Market Size of Europe Commercial Real Estate Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
European Commercial Real Estate 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 COVID-19 pandemic had a huge impact on the European commercial real estate sector. Although the crisis impacted the European economy and investment sentiment among investors and occupiers, the sector is currently recovering but has not reached the pre-pandemic levels.
- According to the European Public Real Estate Association, the European Union's commercial real estate sector contributed a combined GDP of more than USD 15.3 trillion in 2021. The sector had 177 REITs, with a combined market cap of USD 133 billion, and 261 Non-REITs, with a combined market cap of USD 308 billion.
- Germany continues to lead the commercial real estate sector, despite the declining growth rate in the market. The growth rate in Q4 2021 declined by 8% compared to Q4 2020 but experienced a growth of 14% compared to pre-pandemic levels.
- The United Kingdom is the next leading country in the market, with an annual growth rate of more than 25% in Q4 2021 compared to the same quarter in 2020. Moreover, countries like Sweden, the United Kingdom, Belgium, and Norway saw the highest growth in the sector. Meanwhile, France, Spain, and the Netherlands experienced a slow recovery due to a decline in the growth of the retail sector.
European Commercial Real Estate Industry Segmentation
Commercial real estate (CRE) refers to property for business-related purposes or to provide a workspace rather than a living space. The report on the European commercial real estate market includes market dynamics, technological trends, insights, and government initiatives related to the market.
The report covers segmentation by type (offices, retail, industrial, logistics, multi-family, and hospitality) and by country (United Kingdom, Germany, France, Russia, and the Rest of Europe). The report offers market size and forecasts for the Europe Commercial Real Estate market in value (USD billion) for all the above segments.
| By Type | |
| Offices | |
| Retail | |
| Industrial | |
| Logistics | |
| Multi-family | |
| Hospitality |
| By Country | |
| United Kingdom | |
| Germany | |
| France | |
| Russia | |
| Rest of Europe |
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.
Europe Commercial Real Estate Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
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1.3 Government Initiatives and Regulatory Aspects for Commercial Real Estate Sector
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1.4 Supply Chain / Value Chain Analysis
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1.5 Insights into Existing and Upcoming Projects
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1.6 Insights into Rental Yields in the Commercial Real Estate Segment
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1.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate
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1.8 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
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1.9 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Offices
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2.1.2 Retail
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2.1.3 Industrial
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2.1.4 Logistics
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2.1.5 Multi-family
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2.1.6 Hospitality
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2.2 By Country
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2.2.1 United Kingdom
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2.2.2 Germany
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2.2.3 France
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2.2.4 Russia
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2.2.5 Rest of Europe
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Europe Commercial Real Estate Market Size FAQs
How big is the Europe Commercial Real Estate Market?
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.
What is the current Europe Commercial Real Estate Market size?
In 2024, the Europe Commercial Real Estate Market size is expected to reach USD 1.47 trillion.
