Please Wait.....
Report
Europe Commercial Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)
Market Report I 2025-06-01 I 150 Pages I Mordor Intelligence
Europe Commercial Real Estate Market Analysis
The European commercial real estate market stands at USD 1.55 trillion in 2025 and is forecast to reach USD 2.05 trillion by 2030, reflecting a 5.8% CAGR as ample liquidity returns and investors pivot toward high-quality, sustainable assets. A 25% rebound in transaction volumes to EUR 213 billion in 2025 signals renewed confidence, spurred by the European Central Bank's rate reductions and improving financing conditions Capital is gravitating toward Grade-A logistics facilities and green-certified offices, while mixed-use "living-as-a-service" projects gain traction for their resilience and alignment with new urban lifestyles. Regional performance is increasingly polarized: the United Kingdom retains scale leadership, Central and Eastern Europe accelerate on near-shoring demand, and Southern Europe leverages special-economic-zone incentives to attract fresh capital. Corporate net-zero mandates, demographic realignments, and evolving occupier preferences collectively sustain the growth outlook of the European commercial real estate market through 2030.
Europe Commercial Real Estate Market Trends and Insights
Demographic-led Urbanisation Clusters Reshaping Development Priorities
Secondary cities such as Manchester, Birmingham, Munich and Hamburg are absorbing population growth outpacing national averages, compressing office vacancy 2-3 percentage points below primary markets. Investment volumes in these German hubs grew 23% in 2024 as institutional capital seeks stable yields outside saturated capitals. Retail and mixed-use developments tailored to emerging live-work hubs dominate new pipelines, reflecting the European commercial real estate market's shift toward decentralised growth nodes . Developers now prioritise flexible floor plates and community-oriented amenities that match the demographic profile of young, mobile workforces. The trend is expected to influence land-use planning, infrastructure spending and forward-funding structures over the medium term.
E-commerce Acceleration Transforms Logistics Landscape
Online retail penetration is projected to reach 25% of total European sales by 2030, intensifying demand for modern distribution centres along key corridors in Poland, the Netherlands and Germany. Urban logistics hubs within 30-minute drive times of major populations command 15-20% rent premiums and near 98% occupancy. Forward leasing often secures entire projects before completion, underscoring scarcity of scalable, automation-ready stock. Advanced picking and sorting systems are incorporated into 73% of new warehouses as operators chase fulfilment speed and lower cost-per-package. The European commercial real estate market is therefore seeing logistics yields compress faster than any other sector, setting new benchmarks for prime-grade performance.
Regulatory Compliance Costs Strain Investment Returns
EU energy-performance requirements oblige owners in Germany, France, Spain and Italy to spend EUR 165 billion on retrofits by 2024 or risk asset stranding over the next decade. Renovations can exceed 30% of asset value, discouraging upgrades in lower-grade stock and widening the valuation gap between prime and secondary holdings. Financing for heavy-capex assets is scarce, steering capital toward already compliant buildings and amplifying a two-tier market. As a consequence, the European commercial real estate market is seeing opportunistic funds target discounted secondary inventories for deep-green repositioning strategies that can unlock value post-compliance.
Other drivers and restraints analyzed in the detailed report include:
Near-shoring Initiatives Fuel Industrial Real Estate Boom / Corporate Sustainability Mandates Redefine Office Quality Standards / Financing Conditions Create Market Uncertainty /
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Offices retained the largest share of 32% of 2024 revenue, but shifting work models and sustainability imperatives force owners to reposition portfolios. Prime CBD towers and adaptive-reuse campuses outperform, while legacy suburban stock falls into value-add or opportunistic territory. Retail is stabilising around experiential flagships that integrate digital-native concepts, registering 3.5% annual rental growth in top high-street districts. Meanwhile, data centres, life-science labs and hospitality are expanding faster than the broader European commercial real estate market, supported by AI workloads, demographic travel rebounds and specialised operator demand.
Logistics assets are projected to clock the fastest 7.1% CAGR between 2025-2030, propelled by near-shoring, e-commerce and the need for resilient distribution networks. Occupancy for new-generation facilities stays close to 95% despite robust development pipelines, evidencing structural undersupply. Tenant demand emphasises automation readiness, ESG certification and proximity to multimodal nodes, attributes that allow landlords to pass through indexed rental escalations. In the European commercial real estate market size calculations, logistics' incremental revenue contribution is set to outstrip offices through the forecast horizon.
The Europe Commercial Real Estate Market is Segmented by Property Type (Offices, Retail, Logistics, Others (industrial Real Estate, Hospitality Real Estate, Etc. ), by Business Model (Sales and Rental), by End-User (Individuals/Households, Corporates & SMEs, Others) and by Country (United Kingdom, Germany, France, Netherlands, Spain, Italy, Sweden, Poland and More). The Market Forecasts are Provided in Terms of Value (USD).
List of Companies Covered in this Report:
Unibail-Rodamco-Westfield / Covivio / SEGRO Plc / Landsec / Vonovia SE / British Land Company / Klepierre SA / Gecina SA / Prologis Europe / Goodman European Partnership / Logicor Europe / Blackstone Inc. (European Real Estate) / Brookfield Asset Management (European Real Estate) / Hines Europe / Tishman Speyer Europe / Strabag Real Estate / HB Reavis Group / CA Immo / AG Real Estate / Futureal Group / Merlin Properties Socimi / Deka Immobilien /
Additional Benefits:
The market estimate (ME) sheet in Excel format /
3 months of analyst support /
1 Introduction
1.1 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Commercial Real Estate Buying Trends - Socio-economic & Demographic Insights
4.3 Rental Yield Analysis
4.4 Capital-Market Penetration & REIT Presence
4.5 Regulatory Outlook
4.6 Technological Outlook
4.7 Insights into Real Estate Tech and Startups Active in the Real Estate Segment
4.8 Insights into Existing and Upcoming Projects
4.9 Market Drivers
4.9.1 Demographic-led Urbanisation Clusters in Germany & the UK
4.9.2 Accelerated E-commerce Demand for Industrial & Logistics Assets
4.9.3 Near-shoring & Re-industrialisation Programs in CEE
4.9.4 Corporate Net-Zero Mandates Pushing Grade-A Green Offices
4.9.5 SEZ-linked Tax Incentives in Southern Europe
4.9.6 Rise of 'Living-as-a-Service' Mixed-Use Formats
4.10 Market Restraints
4.10.1 EPC-Class Upgrade Costs under EU Taxonomy
4.10.2 Monetary-Policy-Driven Financing Volatility
4.10.3 Geopolitical Risk Premium (Russia-Ukraine Spill-over)
4.10.4 Saturation of Prime High-Street Retail in Western Europe
4.11 Value / Supply-Chain Analysis
4.11.1 Overview
4.11.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights
4.11.3 Real Estate Brokers and Agents - Key Quantitative and Qualitative Insights
4.11.4 Property Management Companies - Key Quantitative and Qualitative Insights
4.11.5 Insights on Valuation Advisory and Other Real Estate Services
4.11.6 State of the Building Materials Industry and Partnerships with Key Developers
4.11.7 Insights on Key Strategic Real Estate Investors/Buyers in the Market
4.12 Porters Five Forces
4.12.1 Threat of New Entrants
4.12.2 Bargaining Power of Buyers/Occupiers
4.12.3 Bargaining Power of Suppliers (Developers/Builders)
4.12.4 Threat of Substitutes
4.12.5 Competitive Rivalry Intensity
5 Market Size & Growth Forecasts (Value)
5.1 By Property Type
5.1.1 Offices
5.1.2 Retail
5.1.3 Logistics
5.1.4 Others (industrial real estate, hospitality real estate, etc.)
5.2 By Business Model
5.2.1 Sales
5.2.2 Rental
5.3 By End-user
5.3.1 Individuals / Households
5.3.2 Corporates & SMEs
5.3.3 Others
5.4 By Country
5.4.1 United Kingdom
5.4.2 Germany
5.4.3 France
5.4.4 Netherlands
5.4.5 Spain
5.4.6 Italy
5.4.7 Sweden
5.4.8 Poland
5.4.9 Russia
5.4.10 Rest of Europe
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}
6.4.1 Unibail-Rodamco-Westfield
6.4.2 Covivio
6.4.3 SEGRO Plc
6.4.4 Landsec
6.4.5 Vonovia SE
6.4.6 British Land Company
6.4.7 Klepierre SA
6.4.8 Gecina SA
6.4.9 Prologis Europe
6.4.10 Goodman European Partnership
6.4.11 Logicor Europe
6.4.12 Blackstone Inc. (European Real Estate)
6.4.13 Brookfield Asset Management (European Real Estate)
6.4.14 Hines Europe
6.4.15 Tishman Speyer Europe
6.4.16 Strabag Real Estate
6.4.17 HB Reavis Group
6.4.18 CA Immo
6.4.19 AG Real Estate
6.4.20 Futureal Group
6.4.21 Merlin Properties Socimi
6.4.22 Deka Immobilien
7 Market Opportunities & Future Outlook
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security