Commercial real estate investment distribution in Europe 2013-2023, by property type

In 2023, approximately 29 percent of all property investments went into the office sector, which was more than any other commercial real estate sector. Offices remain a large portion of European real estate investment, despite recent fluctuations in demand and vacancy rates.

What decides an investment?

Multiple factors play a role in an investor’s or developer’s decision to invest: availability of land or assets, construction costs, economic conditions, currency volatility, interest rate movements, and many others. While many investors specialize in a specific type of real estate, market demand also influences their choices. According to industry experts, among the main issues impacting investments were construction costs, availability of suitable assets/land, and European economic growth.

European leaders in the real estate market

In 2023, European investment in commercial property totaled almost 125 billion euros. Four European countries exceeded one billion euros in commercial property investment: the United Kingdom, Germany, France, and Sweden. Looking at individual European cities, London, Paris, and Madrid were the ones with the highest investment and development prospects on the real estate market for 2024.