The European commercial real estate (CRE) market in 2024 has exhibited resilience and adaptability amid economic fluctuations and evolving investor preferences. A notable trend is the increased investment in the logistics sector, driven by the e-commerce boom and the need for efficient supply chain solutions. For instance, Brookfield Asset Management's acquisition of Tritax EuroBox for $1.44 billion underscores the growing demand for warehouse and distribution center properties across Europe.
Source: Reuters
In Germany, the CRE market has shown signs of recovery, with property transactions projected to reach €35 billion in 2024, potentially increasing to €40-42 billion in 2025. Despite this growth, the sector remains near its lowest levels in a decade, reflecting ongoing challenges such as high interest rates and increased building costs.
Source: Reuters
Romania has emerged as a standout performer in the Central and Eastern European (CEE) region. The Romanian real estate investment market closed the first three quarters of 2024 with transactions totaling almost €650 million, a threefold increase compared to the same period last year. This surge was driven mainly by industrial and retail assets, positioning Romania as a leader in investment growth within the CEE-6 countries.
Source: Romania Insider
Looking ahead, the European CRE market is expected to gain momentum into 2025, supported by positive GDP growth, resilient labor markets and improved financing conditions. Investors are advised to prioritize sustainability, adaptability and strategic asset selection to capitalize on emerging opportunities across sectors.