The European real estate market in 2025 is showing moderate recovery driven by stabilizing interest rates, economic growth, and increased investor confi dence. Investment volumes are projected to reach €214 billion, a 23% increase from the previous year.
Key regional highlights include:
- Portugal: Lisbon leads with over €275 million in investments in Q1 2025, despite ongoing licensing and tax challenges.
- Spain: The market continues to grow with property prices expected to rise 4-6% this year, supported by consumer confi dence and lower interest rates.
- France: Limited housing supply and political uncertainty may slow price growth.
- Italy: Luxury property remains attractive, especially in northern regions, with increasing transaction volumes.
Prominent sectors are luxury residential, logistics driven by e-commerce growth, and sustainable offi ce spaces refl ecting evolving tenant and investor preferences.
However, challenges such as limited housing aff ordability, restrictive fi scal policies, and political uncertainties (like Spain’s proposed property taxes on non-EU buyers) pose risks to the market outlook.
Overall, 2025 off ers signifi cant opportunities for investors who navigate regional trends and sectoral shifts strategically, focusing on luxury housing, logistics, and green offi ce spaces.
Source: Euro Weekly News