The Europe Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums and Villas & Landed Houses), Price Band (Affordable, Mid-Market and Luxury), Mode of Sale (Primary and Secondary), Business Model (Sales and Rental) and Country (Germany, United Kingdom, France, Spain, Italy, Netherlands, Sweden, Denmark, Norway and Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

London maintains its dominance in European real estate with the highest prospect score of 2.66 for 2026, significantly ahead of Madrid and Paris, which scored 2.22 and 2.04, respectively. This ranking reflects a comprehensive assessment of factors that real estate investors consider crucial, including market size, economic performance, and connectivity. The gap between London and other major cities highlights its resilience despite Brexit concerns and points to continued investor confidence in the British capital's property market fundamentals. Key factors driving city rankings Market size, liquidity, and economic performance emerge as the most critical factors determining a city's investment attractiveness for 2026. London's top position is reinforced by its established market infrastructure and global connectivity, while Madrid and Paris benefit from strong economic forecasts. However, investors face mounting challenges that could impact these markets, with construction costs, capital expenditure requirements, and increasing environmental sustainability regulations cited as major concerns. Industry experts note that these factors could particularly affect development-heavy investments in emerging European markets. (1062070, 376877) Sectoral growth opportunities Data centers represent the most promising real estate investment sector in Europe for 2026, with London, Frankfurt, and Dublin emerging as primary destinations due to their growing data center capacity. New energy infrastructure and student housing follow closely as high-potential sectors. This trend reflects the broader shift toward technology-driven and specialized real estate assets. While traditional suburban offices face diminishing prospects, cities with strong digital infrastructure like London and Frankfurt are positioned to capitalize on the demand for data-focused real estate developments, potentially strengthening their overall market position in the coming years.

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.

Data centers had the highest investment prospects among all sectors in the European real estate market in 2026, with a score of **** out of 5. Europe's main destinations for data center investments in Europe include London, Frankfurt, and Dublin: cities with a growing data center power capacity. New energy infrastructure and student housing ranked second and third with scores of **** and **** out of 5. At the other end of the scale were suburban offices with a score of *** out of 5.

Discover the latest trends in the booming €1.95 trillion European residential real estate market. Explore growth forecasts (CAGR 4.5%), key drivers, regional breakdowns (UK, Germany, France), leading companies, and market challenges until 2033. Recent developments include: November 2023: DoorFeed, a Proptech company, raised EUR 12 million (USD 13.24 million) in seed funding, led by Motive Ventures and Stride and supported by renowned investors, including Seedcamp. Founded by veteran proptech entrepreneur and ex-Uber employee James Kirimi, DoorFeed aims to be the first choice for institutional investors seeking to invest in residential real estate. The company is looking to expand its footprint across Europe, with a focus on Spain, Germany, and the United Kingdom., October 2023: H.I.G, a global alternative investment firm with over USD 59 billion in assets under management, invested in the real estate development company, The Grounds Real Estate Development AG (“the Transaction”), which is listed on the alternative stock exchange. The proceeds of the transaction are expected to be utilized to fund the capital expenditures of the current projects of The Grounds. The Grounds, based in Berlin, specializes in the acquisition and development of German residential properties located in large metropolitan areas. In the transaction, the major shareholders of The Grounds, which currently hold 73% of the company’s shares, have agreed to grant H. I.G. the right to share in future rights issues.. Key drivers for this market are: Increasing Developments in the Residential Segment, Investments in the Senior Living Units. Potential restraints include: Limited Availability of Land Hindering the Market. Notable trends are: Student Housing to Gain Traction.

Discover the booming European residential real estate market! This in-depth analysis reveals a €1.95 trillion market projected for 4.50% CAGR growth (2025-2033), driven by urbanization, rising incomes, and government initiatives. Explore market trends, key players (Elm Group, Places for People, etc.), and regional insights (UK, Germany, France). Recent developments include: November 2023: DoorFeed, a Proptech company, raised EUR 12 million (USD 13.24 million) in seed funding, led by Motive Ventures and Stride and supported by renowned investors, including Seedcamp. Founded by veteran proptech entrepreneur and ex-Uber employee James Kirimi, DoorFeed aims to be the first choice for institutional investors seeking to invest in residential real estate. The company is looking to expand its footprint across Europe, with a focus on Spain, Germany, and the United Kingdom., October 2023: H.I.G, a global alternative investment firm with over USD 59 billion in assets under management, invested in the real estate development company, The Grounds Real Estate Development AG (“the Transaction”), which is listed on the alternative stock exchange. The proceeds of the transaction are expected to be utilized to fund the capital expenditures of the current projects of The Grounds. The Grounds, based in Berlin, specializes in the acquisition and development of German residential properties located in large metropolitan areas. In the transaction, the major shareholders of The Grounds, which currently hold 73% of the company’s shares, have agreed to grant H. I.G. the right to share in future rights issues.. Key drivers for this market are: Increasing Developments in the Residential Segment, Investments in the Senior Living Units. Potential restraints include: Increasing Developments in the Residential Segment, Investments in the Senior Living Units. Notable trends are: Student Housing to Gain Traction.

The Europe Luxury Residential Real Estate Market Report is Segmented by Business Model (Sales, Rental), by Property Type (Apartments & Condominiums, Villas & Landed Houses), by Mode of Sale (Primary (New-Build), Secondary (Existing-Home Resale)), and by Country (United Kingdom, Germany, France, Italy, Spain, Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

Data description

The House Price Index (HPI) measures inflation in the residential property market. The HPI captures price changes of all types of dwellings purchased by households (flats, detached houses, terraced houses, etc.). Only transacted dwellings are considered, self-build dwellings are excluded. The land component of the dwelling is included.

The HPI is available for all European Union Member States (except Greece), the United Kingdom (only until the third quarter of 2020), Iceland, Norway, Switzerland and Turkey. In addition to the individual country series, Eurostat produces indices for the euro area and for the European Union (EU). As from the first quarter of 2020 onwards, the EU HPI aggregate no longer includes the HPI from the United Kingdom.

The national HPIs are produced by National Statistical Offices (NSIs) and the European aggregates by Eurostat, by combining the national indices. The data released quarterly on Eurostat's website include the national and European price indices, weights and their rates of change.

In order to provide a more comprehensive picture of the housing market, house sales indicators are also provided. Available house sales indicators refer to the total number and value of dwellings transactions at national level where the purchaser is a household. Eurostat publishes in its database a quarterly and annual house sales index as well as quarterly and annual rates of change.

Statistical concepts and definitions

The HPI is based on market prices of dwellings. Non-marketed prices are ruled out from the scope of this indicator. Self-build dwellings, dwellings purchased by sitting tenants at discount prices or dwellings transacted between family members are out of the scope of the indicator. It covers all monetary dwelling transactions regardless of its type (e.g., carried out through a cash purchase or financed through a mortgage loan).

The HPI measures the price developments of all dwellings purchased by households, regardless of which institutional sector they were bought from and the purpose of the purchase. As such, a dwelling bought by a household for a purpose other than owner-occupancy (e.g., for being rented out) is within the scope of the indicator. The HPI includes all purchases of new and existing dwellings, including those of dwellings transacted between households.

The number and value of house sales cover the total annual value of dwellings transactions at national level where the purchaser is a household. Transactions between households are included. Transfers in dwellings due to donations and inheritances are excluded.

The house sales value reflect the prices paid by household buyers and include both the price of land and the price of the structure of the dwelling. The prices for new dwellings include VAT. Other costs related to the acquisition of the dwelling (e.g., notary fees, registration fees, real estate agency commission, bank fees) are excluded.

Statistical unit

Each published index or rate of change refers to transacted dwellings purchased at market prices by the household sector in the corresponding geographical entity. All transacted dwellings are covered, regardless of which institutional sector they were bought from and of the purchase purpose.

more: https://ec.europa.eu/eurostat/cache/metadata/en/prc_hpi_inx_esms.htm

The Europe Office Real Estate Market Report is Segmented by Building Grade (Grade A, Grade B, and More), by Transaction Type (Rental and Sales), by End Use (BFSI (Banking, Financial Services, and Insurance) and More), and by Country (Germany, UK, France, Italy, Spain and Rest of Europe). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

Discover the thriving European commercial real estate market! Our analysis reveals a €1.47 trillion market in 2025, projected to grow at a 3.53% CAGR until 2033, driven by tech, e-commerce, and hospitality. Explore key trends, regional insights, and leading companies shaping this dynamic sector. Recent developments include: March 2022: BNP Paribas Real Estate acquired a residential asset for its mutual fund BNP Paribas Diversipierre from HT Group, based out of Hamburg. The residential asset is located in Hamburg's Bergedorf district in Germany. This acquisition was made to build a residential asset portfolio and diversify the company's presence in Europe., February 2022: Blackstone Inc. (a leading global investment company) recapitalized its European last-mile logistics company. Blackstone Inc., an existing investor in Midway (a company that owns urban warehouses), agreed to a deal that values the business at USD 24 billion.. Key drivers for this market are: Increasing number of startups. Potential restraints include: Low Awareness and Privacy Issues. Notable trends are: Increasing Investments in the Commercial Real Estate Sector.

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Europe Commercial Real Estate Market Size 2025-2029

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. European commercial real estate market is experiencing significant growth, with increasing private investment pouring into the sector. The primary catalyst fueling market growth is the increasing aggregate private investment.This trend is driven by a robust economic environment, favorable demographic shifts, and the ongoing recovery from the COVID-19 pandemic.

Market Size & Forecast

  Market Opportunities: USD 31.78 billion
  Future Opportunities: USD 91.4 billion 
  CAGR : 5.7%  

However, this growth comes with challenges,rising interest rates pose a threat to affordability and profitability, potentially dampening investor enthusiasm and increasing borrowing costs. As a result, companies must navigate this complex landscape by carefully assessing potential investment opportunities, considering alternative financing options, and adapting to changing market conditions. In order to capitalize on the market's potential and mitigate risks, strategic planning and agility will be essential for success.

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

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European commercial real estate market continues to evolve, presenting dynamic opportunities across various sectors. Property risk assessment and building inspection reports play crucial roles in mitigating potential hazards, ensuring compliance with safety standards. Property tax appeals and portfolio diversification help investors minimize risk and maximize returns. Facility management services, property valuation techniques, and property value metrics enable effective asset management. Data-driven investment strategies, including transaction closing costs, space planning solutions, and development approval processes, facilitate informed decision-making. Capital expenditure planning, portfolio optimization, operating expense control, lease contract review, energy consumption audits, and commercial lease terms are essential for maintaining profitability.
For instance, the adoption of energy management systems in commercial buildings has led to a 10% average reduction in energy consumption, contributing to cost savings and environmental sustainability. Commercial real estate market is expected to grow by 3% annually, driven by these evolving trends and the ongoing demand for efficient, sustainable, and compliant properties.

How is this Europe Commercial Real Estate Market segmented?

Europe commercial real estate market market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029,for the following segments.

Type

  Rental
  Lease
  Sales


End-user

  Offices
  Retail
  Leisure
  Others


End-User

  Corporate
  Investment
  Government


Location

  Urban
  Suburban


Geography

  Europe

    France
    Germany
    Italy
    UK

By Type Insights

The rental segment is estimated to witness significant growth during the forecast period. European commercial real estate market is characterized by dynamic lease renewal negotiations, construction project management, and insurance considerations for green building certification and property refurbishment costs. Zoning regulations compliance and vacancy loss calculations are crucial elements in property acquisition strategy, while property tax optimization and valuation models inform building lifecycle cost analyses. Property management software and tenant occupancy rates are essential for portfolio performance metrics, and market rent surveys guide tenant retention strategies. Portfolio risk management, building code compliance, property data analytics, and rental income projections are integral to asset management strategies. Due diligence processes and capitalization rate analysis are vital during urban planning regulations and space utilization analysis.

In the rental segment, growth is expected to reach over 5% annually, with office rents in the UK, Benelux markets, and peripheral Europe experiencing the highest quarterly growth of 1.8%. However, investment markets remain cautious due to economic uncertainties and rising inflation and finance rates, despite the leasing market's strength and increasing rents. For instance, rental income in the office sector in Paris grew by 3.5% in 2021, reaching €1,122 per square meter per year.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

European commercial real estate market continues to be a significant global investment destina

Discover the latest trends and insights into the booming European commercial real estate market. Projected to reach $2 trillion by 2033, this report analyzes market size, CAGR, key drivers, and regional variations, featuring top players like Blackstone and Hines. Explore the opportunities and challenges across office, retail, industrial, and other sectors. Recent developments include: December 2023: Blackstone, the world’s largest commercial real estate owner, announced plans to grow its footprint in Europe, with an emphasis on data centers, warehouses, and student accommodation. Blackstone’s London office locations are more flexible than those of WeWork due to its majority ownership of The Office Group, which partnered with Fora (part of its parent brand). The Office Group has more than 70 offices, with 61 in Central London.December 2023: MEININGER, the world’s largest hotel operator, announced plans to expand into Edinburgh after signing an agreement with property development firm S Harrison to turn a 1970s office block in the city’s Haymarket into a beautiful new hotel. S Harrison, based in York, purchased Osborne House in late 2018 and has since worked with Edinburgh’s Comprehensive Design Architects to develop the building’s transformational plans. The new hotel is expected to have a total of 157 bedrooms and include a ground-floor bar and lounge.. Key drivers for this market are: Increasing immigration driving the market, Increase in supply of commercial properties driving the market. Potential restraints include: Increasing immigration driving the market, Increase in supply of commercial properties driving the market. Notable trends are: The Retail Segment is Experiencing Lucrative Growth.

The Europe real estate market reached USD 2.25 Trillion in 2024. The market is projected to grow at a CAGR of 5.40% between 2025 and 2034, reaching almost USD 3.81 Trillion by 2034.

The Europe Real Estate Brokerage Report is Segmented by Property Type (Residential (Apartments & Condominiums, and More), Commercial (Office, Retail and More)), by Service (Sales, Rental/Leasing), by Client Type (Individuals/Households, Corporates & SMEs, Institutional Investors), and by Geography (Germany, United Kingdom, France, Spain, Italy, Russia, Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

Europe Residential Real Estate Market size is growing with a CAGR of 5.7% in the prediction period & it crosses USD 716.2 Mn 2032 from USD 485.83 Mn in 2025.

Germany, the UK, and France had the largest commercial real estate markets in Europe in 2024, amounting to almost **** of the European market. The market size is based on the value of high-quality real estate as a percentage of each country’s GDP. In Germany, the market size of commercial real estate was about *** trillion U.S. dollars.  Investment in commercial real estate Although the United Kingdom had a smaller market size than Germany, it recorded a higher commercial real estate investment volume in 2023. Due to the unfavorable economic climate, transaction activity declined markedly that year, affecting the whole region. Many countries, such as Germany, Sweden, and Italy, saw investment plummet by approximately ** percent. Most popular European cities among real estate investors Industry experts consider a broad range of factors when allocating capital to real estate assets. Transport connectivity and a city’s economic performance, however, stood out as most important, according to a 2023 survey. Unsurprisingly, the capital cities of the UK, Spain, and France ranked as the European cities with the highest real estate prospects in 2025.

The size of the Europe Office Real Estate Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 4.00">> 4.00% during the forecast period. The Europe office real estate market refers to the segment of the property market focused on the development, leasing, and sale of office spaces across European countries. This market includes a wide range of properties, from high-rise office buildings in major cities to smaller office spaces in suburban areas. The demand for office real estate is influenced by various factors, including economic growth, corporate expansion, and trends in workforce dynamics. In recent years, the rise of hybrid and remote working models has reshaped the office real estate landscape, leading to a greater focus on flexible workspaces, coworking spaces, and adaptable office layouts that accommodate changing business needs. Key markets for office real estate in Europe include major business hubs such as London, Paris, Frankfurt, and Amsterdam, where demand is driven by multinational corporations, financial institutions, and tech companies. These cities tend to have higher rental rates and more competitive markets due to the concentration of businesses and economic activity. Secondary cities and regional markets are also growing, offering more affordable office space and appealing to companies looking to decentralize or relocate to less expensive areas. Recent developments include: May 2023: CBRE Group, Inc. announced that its property management group has formed a global strategic partnership with Deepki that will bring Deepki Ready, one of the world's most extensive landlord-focused real estate sustainability data intelligence platforms to the commercial properties CBRE manages for investors around the world. CBRE has been using Deepki for properties it manages in the United Kingdom for more than two years; Deepki is now being deployed across CBRE-managed properties throughout Continental Europe, with plans to begin using Deepki in the Americas and the Pacific region as the next step in a global rollout., April 2023: Global real estate professional services firm JLL and iO Partners announce that JLL will transfer its existing Leasing, Capital Markets, Valuation Advisory, Consulting, and Project Management delivery businesses to iO Partners in the Czech Republic, Hungary, Romania, and Slovakia. The two companies have formed a preferred partnership enabling them to service clients in the Czech Republic, Hungary, Romania and Slovakia. The agreement will give iO Partners a strong presence in these four countries with experienced employees, efficient systems and processes, and a strong ongoing partnership with JLL.. Key drivers for this market are: Economic Growth, Urbanization and Urban Renewal; Foreign Investments in the Sector. Potential restraints include: The Uncertainty Surrounding Brexit. Notable trends are: Offices Remain a Core Sector.

Gain insights into the Europe Real Estate Market size at USD 172 trillion in 2023, featuring industry analysis and key developments.

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Residential Real Estate Market Size 2025-2029

The residential real estate market size is valued to increase USD 485.2 billion, at a CAGR of 4.5% from 2024 to 2029. Growing residential sector globally will drive the residential real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 55% growth during the forecast period.
By Mode Of Booking - Sales segment was valued at USD 926.50 billion in 2023
By Type - Apartments and condominiums segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 41.01 billion
Market Future Opportunities: USD 485.20 billion
CAGR : 4.5%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving sector that continues to shape the global economy. With increasing marketing initiatives and the growing residential sector globally, the market presents significant opportunities for growth. However, regulatory uncertainty looms large, posing challenges for stakeholders. According to recent reports, technology adoption in residential real estate has surged, with virtual tours and digital listings becoming increasingly popular. In fact, over 40% of homebuyers in the US prefer virtual property viewings. Core technologies such as artificial intelligence and blockchain are revolutionizing the industry, offering enhanced customer experiences and streamlined processes.
Despite these advancements, regulatory compliance remains a major concern, with varying regulations across regions adding complexity to market operations. The market is a complex and intriguing space, with ongoing activities and evolving patterns shaping its future trajectory.

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

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How is the Residential Real Estate Market Segmented and what are the key trends of market segmentation?

The residential real estate industry 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.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period.

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The Sales segment was valued at USD 926.50 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 55% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region holds a significant share and is projected to lead the global market growth. Factors fueling this expansion include the region's rapid urbanization and increasing consumer spending power. Notably, residential and commercial projects in countries like India and China are experiencing robust development. The residential real estate sector in China plays a pivotal role in the economy and serves as a major growth driver for the market.

With these trends continuing, the APAC the market is poised for continued expansion during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

In the Residential Real Estate Market, understanding the impact property tax rates home values and effect interest rates mortgage affordability is essential for buyers and investors. Key factors affecting home price appreciation and factors influencing housing affordability shape market trends, while the importance property due diligence process and requirements environmental site assessment ensure informed decisions. Investors benefit from methods calculating rental property roi, process home equity loan application, and benefits real estate portfolio diversification. Tools like property management software efficiency and techniques effective property marketing help tackle challenges managing rental properties. Additionally, strategies successf

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