News / From the associates

The Colliers report highlights how the global real estate market continues to be influenced by evolving political and economic conditions, including interest rate trends and technological transformations related to artificial intelligence and the digitization of buildings. In this context, investors view Europe as a relatively stable market that still offers abundant opportunities compared to other more mature markets. Growing demand for digital infrastructure—particularly data centers—is set to drive new investments, thanks to the spread of AI, the expansion of cloud computing, and the increasing data processing capacity required by businesses.

In the European real estate capital market, activity is expected to pick up in 2025, supported by improving macroeconomic conditions and gradually declining interest rates. The private equity market recorded record levels of activity, with a sharp increase in leveraged buyouts and megadeals (transactions exceeding one billion euros), while liquidity was also supported by the reopening of exit markets through IPOs and secondary transactions. However, in the second half of the year, signs of increased credit stress emerged, with a significant rise in defaults compared to the long-term average, even as the bond market remained predominantly driven by investment-grade securities.

As for the real estate sector, one of the most significant trends in Europe is the growth of the sale-and-leaseback market, which reached approximately €5.4 billion in 2025, up 28% year-over-year. In the second half of the year alone, transaction volume grew by 68% compared to the first half of 2025, reaching approximately €3.3 billion. Logistics-industrial and retail assets dominated the market, accounting for a combined 91% of transactions, while offices accounted for the remaining 9%. Geographically, the United Kingdom accounted for 26% of transaction volume in the second half of the year, followed by the Nordic countries, Germany, and the Netherlands. Looking ahead, Europe continues to attract international capital, particularly from institutional investors with experience in the United States, and the report forecasts that 2026 could see a further strengthening of activity.