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Europe Commercial Real Estate Market Size (2024 - 2029)

The market size of the European commercial real estate sector is on a recovery trajectory following the significant impact of the COVID-19 pandemic, although it has yet to return to pre-pandemic levels. Germany remains at the forefront of the market, despite a slowdown in growth, while the United Kingdom shows robust annual growth. Other countries such as Sweden, Belgium, and Norway also report substantial growth, whereas France, Spain, and the Netherlands are experiencing a more gradual recovery, particularly due to challenges in the retail sector.

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Market Size of Europe Commercial Real Estate Industry

Europe Commercial Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.47 Trillion
Market Size (2029) USD 1.75 Trillion
CAGR (2024 - 2029) 3.53 %
Market Concentration Low

Major Players

Europe Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Commercial Property Management Market Analysis

The Europe Commercial Real Estate Market size is estimated at USD 1.47 trillion in 2024, and is expected to reach USD 1.75 trillion by 2029, growing at a CAGR of 3.53% during the forecast period (2024-2029).

  • The commercial property management market in Europe is driven by the increasing demand for commercial spaces, especially offices.
  • In 2024, leasing volumes are expected to increase by 10% but remain below historical levels. Employment in office-using industries is expected to show moderate growth in 2024. Occupiers will continue to advance their RTO and workplace strategies to the point where their space requirements are clearer.
  • In 2024, quality differences are expected to become even more pronounced. Rightsizing and quality enhancement are the two major trends in portfolio strategy. As occupiers act to increase the user appeal of space and control costs, poorer quality space will experience higher voids and accelerated obsolescence. However, there will be upgrades/refurbishment opportunities.
  • Vacancy rates are expected to be at their highest levels in more markets. While there may be an increase in the number of new developments in some of the larger markets, the inflow of speculative space into the market is expected to be contained. It is anticipated that most office markets will experience moderate increases in prime rents during 2024.
  • The flex market is driven by corporate demands for quality and flexibility, and it is anticipated there will be an increase in the use of flex space in portfolios. The flex market in Europe is still developing, and it is anticipated to grow further in 2024 as occupiers become more comfortable with enhanced offers.

Europe Commercial Property Management Industry Segmentation

Commercial real estate (CRE) refers to property for business-related purposes or to provide a workspace rather than a living space. The market report includes an analysis of market dynamics, technological trends, insights, and government initiatives.

The commercial property management market in Europe is segmented by type (office, retail, industrial, logistics, multi-family, and hospitality) and country (the United Kingdom, Germany, France, Russia, and Rest of Europe). The report offers market sizes and forecasts in value (USD) for all the above segments.

By Type
Offices
Retail
Industrial
Logistics
Multi-family
Hospitality
By Country
United Kingdom
Germany
France
Russia
Rest of Europe
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Europe Commercial Real Estate Market Size Summary

The European commercial property management sector is on a path of recovery following the significant disruptions caused by the COVID-19 pandemic. Although the sector has not yet returned to pre-pandemic levels, it is experiencing a gradual resurgence, driven by increasing investments and a rebound in market activity. Germany and the United Kingdom are leading the charge, with both countries witnessing substantial growth in investments and market activity. The logistics real estate market, in particular, has shown resilience, fueled by the surge in e-commerce and changing consumer behaviors. This has led to a tight supply of logistics spaces, driving up rental rates and making countries like Germany and the United Kingdom hotspots for warehouse space absorption.

The market is characterized by its competitive and fragmented nature, with numerous players engaging in strategic partnerships, mergers, and acquisitions to expand their presence. The office, industry, and logistics sectors are the most active areas of investment, reflecting a robust demand for office space and logistic warehouses. Major players such as Servo, Covivio, Hines, and Blackstone Inc. are actively involved in shaping the market dynamics through strategic acquisitions and investments. Despite the challenges posed by the pandemic, the sector is poised for growth, with foreign investments recovering and the market landscape evolving to meet the demands of a changing economic environment.

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Europe Commercial Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects for Commercial Real Estate Sector

    4. 1.4 Supply Chain / Value Chain Analysis

    5. 1.5 Insights into Existing and Upcoming Projects

    6. 1.6 Insights into Rental Yields in the Commercial Real Estate Segment

    7. 1.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate

    8. 1.8 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Offices

      2. 2.1.2 Retail

      3. 2.1.3 Industrial

      4. 2.1.4 Logistics

      5. 2.1.5 Multi-family

      6. 2.1.6 Hospitality

    2. 2.2 By Country

      1. 2.2.1 United Kingdom

      2. 2.2.2 Germany

      3. 2.2.3 France

      4. 2.2.4 Russia

      5. 2.2.5 Rest of Europe

Europe Commercial Real Estate Market Size FAQs

The Europe Commercial Real Estate Market size is expected to reach USD 1.47 trillion in 2024 and grow at a CAGR of 3.53% to reach USD 1.75 trillion by 2029.

In 2024, the Europe Commercial Real Estate Market size is expected to reach USD 1.47 trillion.

European Commercial Real Estate Market Report Snapshots

Commercial Property Management In Europe Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)