In terms of pricing this is the first time in nine months that average European yields have remained stable across all sectors.

Investment volumes for H1 2024 are projected to exceed €74bn, roughly in line with H1 2023. Savills anticipates that the UK, Spain, Italy, Romania, the Czech Republic, Poland, Denmark and Norway will all record a year-on-year increase in investment volumes for H1 2024.

Marcus Lemli, CEO of Savills Germany and head of investment for Europe, says: “The market seems to be bottoming out both in terms of activity levels and pricing. Sectors such as multifamily, hospitality, and logistics continue to see stronger investor interest.

“Many investors operating internationally are seeking to take advantage of appealing pricing levels across different European jurisdictions. Consequently, we expect to see an increase in cross-border investment activity over the next 6-12 months.”

Lydia Brissy, director european research at Savills, says: “As expected, REITs are gradually increasing their activity. Attractive valuations and the growth of specific asset classes considered more defensive are benefiting REIT fund managers. Additionally, institutional investors are cautiously re-entering the market as interest rates decrease. Meanwhile, many cash-rich investors, privates and sovereign wealth funds that do not rely on costly debt, continue to engage in smaller and medium-sized transactions.”