Analysts predict that Europe’s real estate sector will continue to recover in 2025, driven by increased investment and a rise in transactions. With interest rates decreasing, capital values are stabilizing, and all property segments are expected to see competitive returns, especially prime assets. The office market is expected to rebound as occupancy levels rise, though the recovery will be uneven between high-quality and secondary properties. The residential market will see average asking prices increase by 4% due to lower borrowing costs and ongoing supply constraints. Key trends include sustainability goals and the rising impact of artificial intelligence on the sector.
