Europe’s commercial real estate investment market stalled in the first half of 2025 as investors were unsettled by the potential impact of U.S. trade tariffs on European economic growth and concerns over geopolitical risk, MSCI’s latest quarterly Europe Capital Trends report showed.
A total of €46.2 billion ($53.4 billion) of transactions were completed in second quarter 2025, down 10 percent from the same quarter in 2024. That took investment activity for the first half to €91.7 billion ($106 billion), a 7 percent decline on this period last year.
MSCI’s count of active buyers and sellers in Europe’s real estate investment market was the lowest in a decade during the first half. U.S.-headquartered investors, the biggest cross-border buyers of European commercial real estate, scaled back acquisitions compared to 2024, and investment was well below the long run average.
“The uncertainty that followed U.S. tariff announcements in April meant it wa
