Investment volumes for European factory outlet centres accelerate to €653m
As of August 2025, year-to-date volumes for FOCs now exceed €1bn, pointing to a buoyant investment market leading into the second half of the year.
At the same time, brand appetite for outlet space continues to rise. According to Ken Gunn Consulting, 588 new outlet stores have opened in Europe since July 2023, led by Rituals with 14 new locations, followed by Jack & Jones (12), Under Armour and Swarovski (10 each), and Skechers (9). The most prominent occupiers remain Levi’s, Guess, adidas, Puma, and Tommy Hilfiger. This upward trend is expected to continue; Ecostra’s 2024 brand representative survey reveals that brands plan to open an average of 2.7 outlet stores in 2025, up from 2.4 the previous year, marking the first year-on-year increase since 2018.
In the same survey by Ecostra, brands were asked which countries offer the greatest potential for FOCs across Europe. The results show that Germany is the most popular destination, with 35% of brands interested in expanding there in the next three years. This is followed by Spain (32%), France (27%), the UK (27%), Austria and Poland (both 16%).
Chris Nichols, European research analyst at Savills, comments: “A sustained retail recovery means that Factory Outlet Centres are likely to capture a greater share of discretionary spending over time, as consumers return to leisure-led shopping. Their blend of value, luxury, and increasingly experience-driven environments continues to distinguish them from traditional retail and e-commerce, reinforcing their appeal to consumers.”
Larry Brennan, head of European Retail Agency at Savills, says: “Outlet operators are increasingly investing in experience as a key point of differentiation. Many are introducing pop-up activations, local brand collaborations, and modernising their schemes through refurbishment, sustainable design, and upgraded amenities. These enhancements are designed to drive footfall, encourage repeat visits, and appeal to younger, experience-led consumers.”
James Burke, director, Savills Global Cross Border Investment, says: “Despite their niche positioning, characterised by limited liquidity and intermittent deal flow, investor appetite for high-performing outlet assets remains robust. The primary constraint continues to be on the supply side, with few owners willing to divest successful schemes and a shallow pool of investible stock.
“Across European outlet centres, prime yields are estimated to be between 6-7%, typically 50–100 bps higher than shopping centres which currently average 6.15% across the region. We anticipate yields to slightly compress over the next twelve months, reflective of heightened investor interest.”