Commercial real estate investment in Europe reached an estimated €53 billion in the second quarter of 2026, bringing first-half volumes to €103 billion, according to Savills' latest Market in Minutes: European Investment Nowcast. This represents a 6% year-on-year increase in the second quarter and 3% growth over the first six months of the year.
Among Europe's largest investment markets, Spain and Sweden recorded the strongest growth, with investment volumes rising 56% to €12.2 billion and 68% to €12.8 billion, respectively. Poland and Finland posted the highest growth rates overall, with investment activity almost doubling year-on-year, increasing by 95% and 94%.
By contrast, the UK recorded the sharpest decline among Europe's largest markets, with investment volumes falling 22% to €21.6 billion, while Germany saw an 8% decrease. Belgium (-61%), the Czech Republic (-45%) and Romania (-21%) also reported lower volumes following particularly strong performances in 2025.
International capital accounted for around 45% of total European investment during the first half of the year. While investors from the US, Canada and Singapore reduced activity, US investors remained the largest source of cross-border capital into Europe. Within Europe, Dutch and French investors continued to invest above their respective five-year averages.
The living sector remained the largest investment theme, accounting for around 30% of total investment volumes. The segment, which includes multifamily housing, student accommodation and senior living, continued to benefit from resilient occupier demand. Logistics represented approximately 16% of investment, despite one of the year's largest transactions: the €2.3 billion acquisition of Proudreed's French logistics portfolio.
“The average deal size appears to have increased in the second quarter, supported by several landmark acquisitions that demonstrate continued appetite for exceptional assets despite generally weaker market sentiment”, said Lydia Brissy, Director of the European Commercial Research Team at Savills.
According to Savills, expectations of prime yield compression have been pushed back after long-term sovereign bond yields increased by around 25 basis points across several European markets during the second quarter, reflecting renewed inflation concerns and uncertainty over the interest rate outlook.
“In Europe, financing remains available for high-quality assets, but lenders and investors are placing greater emphasis on income security, asset quality and pricing discipline. We expect prime yields to remain stable across most sectors and markets through the end of 2026, with yield compression limited to exceptional assets”, noted James Burke, Director of Global Cross Border Investment at Savills.
Despite a more subdued first half, Savills forecasts that European commercial real estate investment will reach €251 billion in 2026, rising further to €297 billion in 2027 as postponed transactions complete.
