European real estate investment volumes to reach €53bn in Q2 2026, a 6% year-on-year increase ahead of 2027 tax changes

According to Savills latest research, European real estate investment volumes are forecast to reach €53bn in Q2 2026, a 6% year-on-year increase.

Compared with H1 last year, investment activity in Poland (+95%) and Finland (+94%) almost doubled. Among Europe’s larger real estate markets, Sweden and Spain stood out, with turnover rising by 68% to €12.8bn and 56% to €12.2bn, respectively.

The international real estate advisor says that the majority of investors continue to favour defensive sectors with resilient occupational fundamentals. The Living sectors, including multifamily, purpose-built student accommodation, care homes and senior living, are estimated to now account for almost 30% of total European investment volumes.

Lydia Brissy, director in Savills European commercial research team, says: “Average deal sizes are expected to have increased during Q2, supported by several landmark acquisitions that demonstrate continued appetite for exceptional assets despite weaker overall market sentiment.”

James Burke, director, Global Cross Border Investment at Savills, says: “Although debt remains readily available for high-quality assets in Europe, lenders and investors are placing greater emphasis on income security, asset quality and pricing discipline. We anticipate that prime yields will remain stable across most sectors and countries during the remainder of 2026, with yield compression likely to be confined to exceptional assets.”