This year marks a crucial stage for the European real estate market, which is undergoing a process of recovery and transformation. Favourable economic factors, such as stabilized inflation, reduced interest rates and increasing real incomes are strengthening this sector as a key pillar of the continental economy, according to a Cushman & Wakefield Echinox analysis.
In Europe, the retail sector is well-positioned for sustainable growth in 2025, supported by improved consumer confidence and a better economic climate.
Retailers adopting flexible, consumer-centric strategies and focused on integrating brick & mortar stores and digital channels (omnichannel) are best placed for success. However, the global macroeconomic context and local dynamics will influence the pace of this evolution, requiring adaptability from market players.
In the industrial sector, moderate growth is expected, supported by the demand for modern and sustainable spaces over e-commerce expansion and nearshoring developments.
At the same time, the European office market is undergoing significant transformation, driven by demand for modern, energy-efficient and well-located spaces. Owners of older buildings are facing increased pressure to modernize their portfolios in order to remain competitive, in the context of European regulations on energy efficiency and sustainability. However, high construction costs and geopolitical uncertainties remain significant obstacles.
