Intelligent Investment
European Investor Intentions Survey 2025
January 20, 2025 4 Minute Read
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Executive Summary
CBRE’s 2025 European Investor Intentions Survey reveals a markedly more optimistic outlook compared to recent years. This sentiment aligns with our view that the European property market has begun to recover. Approximately one in four respondents think that the recovery has already started, and nearly three-quarters expect investment market activity will rebound by the end of 2025. Furthermore, more than 90% of respondents expect their purchasing activity to increase or remain the same, while over three-quarters foresee their selling activity to either increase or remain the same. This increased willingness to buy and sell is critical to market liquidity and should drive the recovery forward.
Figure 1: Forecasted purchasing and selling activity compared to 2024
Sector Shifts
This year’s survey highlights a shift in preferred investment sectors. For the first time in the Investor Intentions Survey series, Living emerged as the most sought-after sector by 32% of respondents. Although lower than last year, the Industrial sector remains a strong second at 27%, followed by Office at 16%. As market conditions improve, pricing levels are starting to recover. More respondents are willing to increase their bids on Living, Logistics, and Hotel assets, rather than seeking discounts. However, most respondents are still expecting some discounts for Retail and Office assets.
Investment Strategies
For the first time, our survey captures insights from both General Partners (GPs) and Limited Partners (LPs), covering the entire spectrum of equity. Significant differences emerged in their strategy and sector preferences. Most LPs (81%) are pursuing either core or core plus strategies, while 56% of GPs are targeting value-add and opportunistic investments. In terms of sectors, LPs were even more pronounced in their preference for Living (47%), while GPs were almost equally divided between Living and Logistics. Surprisingly, while Logistics (21%) was also ranked second amongst LPs, this second place was shared with Office (21%), showing that LPs retain appetite for the sector.
Preferred Markets
Most cross-border respondents selected the UK as the market with the strongest expected total property returns in 2025, driven by strong interest in London. Spain ranked second, with investors showing interest in Madrid and Barcelona. Poland took third place for the second consecutive year. Although Germany and Italy did not rank as high in the overall standings, the results indicate strong domestic demand in these markets.
Figure 2: Country level performance expectations
Sustainability at the forefront
Sustainability is a key consideration for investment decisions for 95% of respondents. The preferred approach for enhancing value through sustainability continues to be retrofitting existing buildings. Most respondents already have capital available to fund these enhancements, indicating that sustainability is fully embedded in their capital raising or allocation strategies.
Survey Criteria
CBRE’s European Investor Intentions Survey 2025 was conducted between 4 November 2024, and 29 November 2024. 781 Europe-based investors participated in the survey, which asked respondents a range of questions regarding their buying appetite and preferred strategies for sectors and markets in 2025.
