Investors are gradually becoming more sector agnostic and are more focused on the quality of assets to deliver solid income returns in their investment underwrites, according to Savills. INREV’s latest investor sentiment survey for fourth quarter 2025 indicates investors most favor Southern European markets, with a much-improved sentiment toward Germany in recent months. There are fewer discussions around office attendance and obsolescence than 12 to 24 months ago, and buyers are now more committed to executing deals.
This aligns closely with the latest GDP growth forecasts for Europe. Oxford Economics anticipates euro zone GDP growth will reach 1.0 percent in 2026, followed by 1.6 percent in 2027. Economies in Central and Eastern Europe and Southern Europe are expected to record the strongest GDP growth in 2026, driven by stronger domestic demand and investment. Western European economic prospects are expected to improve strongly next year, with Germany, for example, expec
