In the latest report titled “2025 Global Investor Outlook,” Colliers highlights the new opportunities emerging in the main and alternative real estate market segments in Europe, the Middle East, and Africa (EMEA).
Warsaw, December 5, 2024 — According to Colliers’ experts, due to the resurgence of global investment interest after a period of economic uncertainty and rising interest rates, 2025 could see a revival of investor activity in the EMEA region. This is linked to anticipated reductions in interest rates, improved liquidity, and numerous new opportunities appearing in both main and alternative real estate market segments.
“The investment market in the EMEA region is ready for a revival in 2025 due to its stronger fundamentals and renewed interest in high-quality assets,” says Luke Dawson, head of capital markets worldwide and in the EMEA region at Colliers. “As liquidity improves and investors adjusting their strategies to the current realities, we expect a gradual rebound in different market segments. While Europe will see increased interest from investors from Asia and the Middle East, major European cities like Paris, Berlin, Milan, Madrid, Copenhagen or London will continue to attract global capital,” adds Dawson.
In Poland, too, the market has shown signs of rejuvenation for several quarters. The total transaction value on the market after three quarters of 2024 exceeded 3 billion EUR, and according to Colliers’ estimates, it should exceed 4 billion EUR by the end of the year. This would represent a more than 100% increase compared to 2023.
“Interest rate cuts by the European Central Bank make money cheaper, translating into more attractive returns for investors,” comments Piotr Mirowski, Senior Partner, Investment Advisory, Colliers in Poland. “We are already seeing increased interest in logistics centers in key regional markets and office buildings in Warsaw, both in the Central Business District and non-central locations. Several significant transactions, each valued over 50 million EUR, should be finalized by the end of the year. Processes that are expected to close in Q1 2025 are also well underway,” adds Mirowski.
Key findings from Colliers’ “2025 Global Investor Outlook” report:
Return of Global Investment Interest
As the Colliers report indicates, EMEA remains the preferred region for international investors, with a significant inflow of capital expected from Asian and Middle Eastern investors, targeting top market segments such as office buildings and industrial-logistics facilities. North American investors are also showing increased interest due to Europe’s resilience, incentives for returning to offices, and a market revival exceeding that seen in the U.S.
Interest Rate Cuts to Boost Market Liquidity
Anticipated interest rate cuts in the EMEA markets will bring the much-needed increase in transaction volume. The authors of the “2025 Global Investor Outlook” report suggest that these cuts will offset price expectation discrepancies between sellers and buyers and limit the capital erosion observed in recent years. This should, in turn, lead to higher investment growth, including in the office segment.
Quality and ESG Criteria Fulfilled
Investors are focusing on high-quality core assets that meet ESG criteria, particularly in the office, industrial-logistics, and residential segments. The report indicates that about 20% of recently acquired office properties in Europe were destined for renovation or remodeling, underscoring the resilience and adaptability of this market segment.
Increased Popularity of Residential Properties
Due to demographic trends, such as population aging, and the imbalance between demand and supply in the housing market, investment volume in student and senior residences continues to grow. Student-targeted properties are proving especially popular in key university centers, such as Spain, Italy, France, the Netherlands, and the United Kingdom, offering stable, long-term revenue potential.
Alternative Assets Growing More Popular
In the EMEA region, demand for alternative assets, like data centers, is steadily increasing. Significant investor interest is driven by the rapid development of artificial intelligence, which boosts the need for data storage solutions. However, challenges relating to electricity supply and regulatory requirements on some markets, such as Ireland, Germany, and the Netherlands, could limit growth in this segment.
Outlook for 2025
With a revival of the investment market in the EMEA region, both traditional and alternative real estate market segments are expected to see transaction volume growth. The region’s resilience in the shopping mall, hotel, and logistics property sectors provides good prospects for diversified investments in 2025. Prime assets in London, Paris, and Berlin will remain strongholds for global investors, while demand for sustainable renovation and redevelopment of properties points to investment opportunities in the office and industrial space sector.
Source: https://ceo.com.pl/rynek-inwestycyjny-nieruchomosci-w-regionie-emea-gotowy-na-odbicie-w-2025-r-27755
