The Report Covers Europe's Residential Real Estate Market, Which is Segmented by Type (Condominiums & Apartments and Villas & Landed Houses) and Country (Germany, United Kingdom, France, and the Rest of Europe). The Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.

Differences within the value of listed real estate among European countries were significant as of December 2024. Listed real estate refers to real estate companies that are quoted on stock exchanges. They receive income from real estate assets. The United Kingdom was in the lead with listed real estate valued at 96 billion U.S. dollars, whereas the value of listed real estate in Portugal, Italy, and Ireland was a lot lower. Overall, the value of the commercial real estate sector in Europe, Middle East, and Africa (EMEA) region was approximately 12 trillion U.S. dollars.

By End-User:The market is also segmented by end-users, including individual buyers, institutional investors, and real estate investment trusts (REITs). Institutional investors represent a dominant segment, as large corporations, pension funds, and sovereign wealth funds actively pursue real estate investments. The dominance of institutional investors is attributed to the stability and long-term value real estate brings to diversified investment portfolios, particularly within commercial and multi-family properties. By Property Type:The market is segmented by property type into residential, commercial, industrial, and mixed-use properties. The residential segment currently holds a dominant share due to high demand in densely populated urban centers. The popularity of residential properties stems from factors such as limited housing supply, increasing migration to cities, and rising rental yields, which attract investors. In major cities, there is consistent demand for affordable housing and rental properties, boosting the residential market's expansion. Europe Real Estate Market Segmentation The European Union has allocated over 45 billion in funds in 2024 to support affordable housing projects across member states. Countries like Spain and Italy are benefiting from these funds to develop low-cost housing units aimed at addressing the housing shortage in urban areas. National governments are partnering with private developers to co-fund projects, with an anticipated delivery of 150,000 affordable housing units by 2026.

In 2023, the Europe Real Estate Market reached a value of USD 3181.6 million, and it is projected to surge to USD 4350.0 m.illion by 2030.

Multiple factors can play a role in the decision to invest in real estate. To calculate how prosperous European cities are on the estate market, the Urban Land Institute considered transport connectivity, forecasted real estate returns, a city’s economic performance, availability of assets/opportunities for new development, market size and liquidity, regulatory environment, digital connectivity, attractiveness to talent, city leadership, housing affordability, and affordability of space for new/small/growing businesses. Leading European cities for development and investment London, Madrid, and Paris were the three leading European cities by overall prospects for 2025. As the most important factors for selecting a European city for investment or development, industry experts outline forecast the city's economic performance. When it comes to the issues influencing real estate professionals in their investment choices, the major concerns shared were construction costs, capex requirements, and environmental sustainability requirements. Leading investment real estate sectors In terms of investment prospects, the sectors with the highest scores were new energy infrastructure, life sciences, and data centers. This should come as no surprise taking into consideration that the value of investments in industrial and logistic real estate in Europe has increased by more than threefold since 2012.

By Property Type:The market is segmented by property type into residential, commercial, industrial, and mixed-use properties. The residential segment currently holds a dominant share due to high demand in densely populated urban centers. The popularity of residential properties stems from factors such as limited housing supply, increasing migration to cities, and rising rental yields, which attract investors. In major cities, there is consistent demand for affordable housing and rental properties, boosting the residential market's expansion. Europe Real Estate Market Segmentation The European Union has allocated over 45 billion in funds in 2024 to support affordable housing projects across member states. Countries like Spain and Italy are benefiting from these funds to develop low-cost housing units aimed at addressing the housing shortage in urban areas. National governments are partnering with private developers to co-fund projects, with an anticipated delivery of 150,000 affordable housing units by 2026.

The Europe Real Estate Brokerage Market Report is Segmented by Type (Residential and Non-Residential), Service (Sales and Rental), and Country (Germany, United Kingdom, France, and Rest of Europe). The Report Offers Market Sizes and Forecasts for the Above Segments in Value (USD).

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Europe Commercial Real Estate Market Size 2025-2029

The Europe commercial real estate market size is forecast to increase by USD 91.4 billion at a CAGR of 5.7% between 2024 and 2029.

The European commercial real estate market is experiencing significant growth, with increasing private investment flowing into the region. This trend is driven by a number of factors, including the economic stability of European countries, attractive yields compared to other global markets, and the continued demand for urban space. However, this growth is not without challenges. 
One major concern is the rising interest rates, which have the potential to increase borrowing costs for investors and potentially dampen demand. Despite this, opportunities abound for companies seeking to capitalize on the market's dynamics. For instance, there is a growing demand for sustainable real estate, as well as a shift towards alternative asset classes such as student housing, healthcare real estate, and hospitality real estate.
To navigate this complex landscape effectively, companies must stay informed of the latest trends and challenges, and be prepared to adapt their strategies accordingly. Overall, the European commercial real estate market offers significant opportunities for growth, but also requires a strategic and agile approach to succeed.

What will be the Size of the Europe Commercial Real Estate Market during the forecast period?

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The European commercial real estate market encompasses a diverse landscape of travel-restriction resilient sectors, including warehouses and fulfillment centers catering to the in e-commerce spending. Urbanization continues to drive demand for adaptable office spaces in metro cities, with a growing emphasis on sustainable designs and technology-driven solutions. The commercial sector is undergoing digitalization, with brokers and managers leveraging media portals to streamline transactions and enhance client experiences. The hybrid work model is shaping office occupancy trends, as middle-class consumers and the working-age population adapt to flexible work arrangements. Foreign investments remain strong, particularly in sectors like logistics and data centers.
Vacancy rates, rental rates, absorption rates, and property valuations are closely monitored indicators of market health. Architects and engineers are tasked with designing spaces that accommodate the evolving needs of businesses, from flexible layouts to energy efficiency. Overall, the European commercial real estate market exhibits activity and growth, with trends leaning towards digitalization, sustainability, and adaptability.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Rental
  Lease
  Sales


End-user

  Offices
  Retail
  Leisure
  Others


Geography

  Europe

    France
    Germany
    Italy
    UK

By Type Insights

The rental segment is estimated to witness significant growth during the forecast period. The European commercial real estate market is experiencing a significant shift, with the rental segment leading the way in 2024. Office rental growth in Europe accelerated to 1.8% quarter-on-quarter in Q3 2022, resulting in an annual increase of over 5%. Notably, the UK, Benelux markets, and peripheral Europe experienced the highest growth rates. However, investment markets are showing caution, as buyers hesitate to pay earlier price levels due to economic uncertainties, inflation, and finance rates. Urbanization and social distancing measures continue to impact commercial real estate, driving the need for adaptable office spaces and sustainable designs. The commercial sector is also undergoing digitalization, with technology-driven solutions, smart building technology, and data analytics gaining popularity.

Additionally, e-commerce spending and changing customer behavior are leading to increased demand for warehouses, fulfillment centers, and logistics facilities. The Middle-class consumers and the working-age population's digitization of work further fuel the demand for managed office facilities, collaborative spaces, and digital infrastructure. Key trends include hybrid work patterns, energy-efficient features, green building certifications, and sustainable construction methods.

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The rental segment was valued at USD billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

The Europe commercial real estate market is diverse, encompassing a wide range of property types, from office space leasing to industrial warehouse sites. Retail property deals and urban retail units remain a signifi

The Report Covers Office Real Estate Companies in Europe and the market is segmented by Geography (Germany, UK, France, Italy, Spain, Russian Federation, and the Rest of Europe). The report offers the market sizes and forecasts for the European office real estate market in value (USD Billion) for all the above segments.

The Europe Luxury Residential Real Estate Market Report is Segmented by Type (villas/Landed Houses and Condominiums/Apartments) and by Country (Germany, United Kingdom, France, Italy, Russia, and the Rest of Europe). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The Commercial Property Management Market in Europe Report is Segmented by Type (Office, Retail, Industrial, Logistics, Multi-Family, and Hospitality) and by Country (the United Kingdom, Germany, France, Russia, and Rest of Europe). The Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.

In 2024, Turkey had the highest inflation-adjusted house price index out of the 35 European countries under observation, making it the country where house prices have increased the most since 2010. In Turkey, the house price index exceeded 240 index points in the first quarter of 2024, showing an increase in real terms of 140 percent since 2010, the baseline year for the index. Iceland and Estonia completed the top three, with an index value of over 190 index points. In the past year, however, many European countries saw house prices decline in real terms. Where can I find other metrics on different housing markets in Europe? To assess the valuation in different housing markets, one can have a look at the house-price-to-income ratios in different countries worldwide. These ratios are calculated by dividing nominal house prices by nominal disposable income per head. There are also ratios that look at how residential property prices relate to domestic rents, such as the house-price-to-rent ratio for the United Kingdom. Unfortunately, these numbers are not available in a European overview. An overview of the price per square meter of an apartment in the EU-28 countries is available, however. One region, different markets An important trait of the European housing market is that there is not one market, but multiple. Property policy in Europe lies with the domestic governments, not with the European Union. This leads to significant differences between European countries, which shows in, for example, the homeownership rate (the share of owner-occupied dwellings of all homes). These differences also lead to another problem: the availability of data. Non-Europeans might be surprised to see that house price statistics vary in depth, as every country has their own methodology and no European body exists that tracks this data for the whole continent.

TheEurope Real Estate Marketis valued atUSD 172 trillion, a reflection of the continent's evolving urban and economic infrastructure. The market is driven by a rising demand for mixed-use properties, technological integration in property management, and sustainability initiatives. These factors contribute to steady growth as real estate investors and developers shift focus toward energy-efficient and technologically advanced developments.

Key information about House Prices Growth

• EU house prices grew 3.8% YoY in Sep 2024, following an increase of 3.0% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2006 to Sep 2024, with an average growth rate of 3.6%.
• House price data reached an all-time high of 11.2% in Dec 2006 and a record low of -4.8% in Jun 2009.

Europe Real Estate Services market USD 30076.38 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2031. Economic recovery, increased demand for residential and commercial properties, and urban regeneration projects is expected to aid the sales to USD 41418.1 million by 2031

The market is characterized by a high level of consolidation, with several large corporations holding substantial market share. Key players such as CBRE, Savills, and BNP Paribas Real Estate drive competition through advanced data analytics, property management solutions, and sustainable project investments. Europe Real Estate Market Competitive Landscape By End-User:The market is also segmented by end-users, including individual buyers, institutional investors, and real estate investment trusts (REITs). Institutional investors represent a dominant segment, as large corporations, pension funds, and sovereign wealth funds actively pursue real estate investments. The dominance of institutional investors is attributed to the stability and long-term value real estate brings to diversified investment portfolios, particularly within commercial and multi-family properties. By Property Type:The market is segmented by property type into residential, commercial, industrial, and mixed-use properties. The residential segment currently holds a dominant share due to high demand in densely populated urban centers. The popularity of residential properties stems from factors such as limited housing supply, increasing migration to cities, and rising rental yields, which attract investors. In major cities, there is consistent demand for affordable housing and rental properties, boosting the residential market's expansion. Europe Real Estate Market Segmentation The European Union has allocated over 45 billion in funds in 2024 to support affordable housing projects across member states. Countries like Spain and Italy are benefiting from these funds to develop low-cost housing units aimed at addressing the housing shortage in urban areas. National governments are partnering with private developers to co-fund projects, with an anticipated delivery of 150,000 affordable housing units by 2026.

The price of residential real estate increased in most countries in the European Union in the fourth quarter of 2023. Prices rose the most in Poland, Bulgaria, and Croatia. Nevertheless, many of the largest markets saw prices decline. In Germany, the house price index fell by 7.1 percent from the same period a year ago. According to the aggregate house price index for the EU, prices mostly stabilized after a brief drop in the second half of 2022.

The Europe real estate brokerage market is projected to reach a value of USD 218.60 billion by 2023, exhibiting a CAGR of 3.10% during the forecast period of 2023-2033. The market is driven by increasing disposable income, urbanization, and rising demand for commercial properties. The residential segment holds the largest market share due to the growing demand for affordable housing and increasing population. The sales service segment is expected to witness significant growth owing to the rising trend of property investments. The market is highly fragmented with a large number of local, regional, and global players. Key players in the market include Jones Lang LaSalle (JLL), CBRE Group, Colliers International, Savills, and Knight Frank. These companies offer a wide range of real estate brokerage services, including sales, leasing, and property management. The market is also witnessing the emergence of online real estate brokerage platforms, such as Axel Springer SE, Lloyds Property Group, and Foxtons. These platforms offer convenience and transparency to both buyers and sellers, and are likely to gain market share in the coming years. Recent developments include: March 2024: Newmark Group Inc., a commercial real estate advisor, inaugurated its flagship office in Paris, France. The company, known for its services to institutional investors, global corporations, and property owners, appointed industry veterans Francois Blin and Emmanuel Frénot to spearhead the Paris team. Situated at 32 Boulevard Haussmann 75009, in the 9th arrondissement, the office officially opened on March 11, 2024, and is expected to emphasize capital markets and leasing.January 2024: eXp Realty, a luxury real estate brokerage under eXp World Holdings Inc., unveiled the extension of its esteemed luxury real estate initiative, eXp Luxury, into critical European markets. These markets include Portugal, Spain, France, Italy, Germany, and Greece. This expansion is expected to bolster eXp Realty's international footprint and reaffirm its dedication to setting new global luxury real estate benchmarks.. Key drivers for this market are: Economic Stability and Growth, Technological Advancements. Potential restraints include: Economic Stability and Growth, Technological Advancements. Notable trends are: Legislative Changes Drive a Surge in French Real Estate Interest Among British Buyers.

Europe's Real Estate Property Software market will be USD 3196.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.8% from 2024 to 2031. Expanding industrial sectors is expected to aid sales to USD 7251.8 million by 2031

Housing Index in European Union increased to 153.61 points in the third quarter of 2024 from 151.43 points in the second quarter of 2024. This dataset provides - European Union House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.