According to real estate consultancy Savills, the volume of real estate investment in Europe reached around €44.5 billion in Q2 2024. The figure is 18% higher than in the last quarter. Regarding prices, average returns have remained stable across all sectors for the first time in nine months.
Investment volumes for the first half of 2024 are forecast to exceed €74 billion, more or less in line with the same period in 2023. Markets are already above this figure, such as Spain, up 10% with €5.66 billion recorded compared to €5.15 billion in the same period last year.
According to Savills, the European market appears to be stabilising in terms of both activity levels and prices, with sectors such as multi-family housing, hotels, and logistics continuing to draw increased investor interest. In this context, the consultancy firm observes that many international investors are keen to capitalise on attractive pricing across various European regions, and as a result, an uptick in cross-border investment activity is anticipated over the next six to 12 months.
Savills indicates that, as anticipated, real estate investment trusts (REITs) are gradually ramping up their activity, benefiting from attractive valuations and the growth of more defensive asset classes. Additionally, institutional investors are cautiously re-entering the market as interest rates decline. Meanwhile, investors who do not require financing, such as sovereign wealth funds and private investors, continue to be active in European middle-market transactions.
