Commercial real estate investment distribution Europe 2013-2022, by property type

Multiple factors play a role in an investor’s or developer’s decision to invest: availability of land or assets, construction costs, economic conditions, currency volatility, interest rate movements, and many other. While many investors specialize in a specific type of real estate, market demand also influences their choices.

Investment in real estate in Europe

With high market demand and low vacancy rates, offices account for a large portion of the European real estate market. In 2022, approximately 36 percent of all property investments went into the office sector, which was more than any other commercial real estate sector.

European leaders in the real estate market

In 2021, European investment in commercial property totaled almost 273 billion euros. Four European countries exceeded one billion euros in commercial property investment: the United Kingdom, Germany, France, and Sweden. Looking at individual European cities, London, Berlin, and Paris were the ones with the highest investment and development prospects on the real estate market for 2021. According to industry experts, among the main issues impacting investments were construction costs, availability of suitable assets/land, and European economic growth.