European real estate investment volumes to reach €52bn in Q1 2026, a 6% year on year increase
According to Savills latest research, European real estate investment volumes are forecast to reach €52bn in Q1 2026, a 6% year-on-year increase. Finland, Ireland and Poland are all expected to post volume growth of 50% or more compared with Q1 last year.
The international real estate advisor says investment activity across the core markets, Germany, the UK and France, is also expected to increase as the year progresses, with the former having already returned to positive growth in Q1. Full year European investment volumes are forecast to rise by around 16% in 2026, followed by a further 17% growth in 2027, says Savills.
Lydia Brissy, director in Savills European commercial research team, says: “In terms of sector activity, we have seen several large portfolio transactions in multifamily complete, and hotels have also recorded strong activity. Retail, logistics and offices have seen solid levels of investment, resulting in a relatively balanced sector mix overall.”
James Burke, director, Global Cross Border Investment at Savills, says: “We anticipate European investment volumes to continue to pick up as the year progresses and expect to see prime yields starting to move in by 25bps or more in some jurisdictions, particularly for high street assets, retail warehouses, logistics, supermarkets and CBD offices.”