Latest News- Commercial Real Estate Market in Europe: Rental is expected to lead the Type segment during 2025-2029

The Commercial Real Estate Market in Europe is being driven by Growing aggregate private investment

The Commercial Real Estate Market in Europe is expected to grow at a CAGR of 5.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 91.4 billion. European commercial real estate market transactions have witnessed a significant increase in complexity, cost, and duration in 2022. Transactions took 33% longer to complete compared to the previous year. German companies exhibit varied intentions towards investment, with nearly one-fifth planning to reduce activities, a quarter aiming to increase them, and the majority intending to maintain the status quo. In contrast, over eight in ten UK investors are looking to expand their international business. Similarly, the majority of French real estate experts (64%) express a desire to boost their international investment. Spanish investors show a more reserved approach, with almost half intending to invest the same amount as before, while 42% aim to increase their international involvement. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Rental
  • Lease
  • Sales
• End-user
  • Offices
  • Retail
  • Leisure
  • Others
• Geography
  • Europe
    • Germany
    • UK
    • France
    • Italy

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing aggregate private investment
• Boost in e-commerce spending
• Growing commercial sector in Europe

However, the market also witnesses some limitations, which are as follows:

• Increasing interest rates
• Uncertain macroeconomic conditions
• Regulatory uncertainty

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Market Scope in Commercial Real Estate Market in Europe Research Report

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Research Analysis Overview

The European commercial real estate market is undergoing significant changes due to travel restrictions, social distancing, and the digitalization of the commercial sector. Foreign investments are shifting towards technology-driven solutions, media portals, and e-commerce spending. Metro cities are seeing a rise in hybrid work models, adaptable office spaces, and sustainable designs. Middle-class consumers and the working-age population are driving demand for fulfillment centers and flexible workspaces. Vacancy rates, rental rates, absorption rates, property valuations, and adaptable office spaces are being influenced by these trends. Sustainable designs and technology-driven solutions are becoming essential in the new normal, with managed office facilities offering hybrid work patterns to attract tenants.

Market Research Overview

The European commercial real estate market is undergoing significant transformations, with key trends including social distancing measures, digitalization of the commercial sector, increased foreign investments, the rise of media portals, and the adoption of hybrid work models. These shifts are impacting various specialized business-to-business (B2B) service providers, including commercial real estate services, construction and renovation firms, legal services, and e-commerce logistics providers. According to our market analysis, these trends are expected to generate substantial revenue growth in the European B2B services sector, particularly in areas such as e-commerce spending and digital transformation initiatives. The European B2B services market encompasses a range of sectors, including commercial real estate services, construction and renovation, legal services, and e-commerce logistics. Our research indicates that these sectors are poised for significant growth, driven by factors such as increased demand for flexible workspaces, the shift towards e-commerce, and the digitalization of business processes. Additionally, foreign investments in European commercial real estate and the rise of media portals are expected to further fuel market expansion.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/