Market Overview

The Europe real estate market was valued at USD 1.62 Billion in 2024 and is expected to reach USD 2.41 Billion by 2033, exhibiting a CAGR of 4.50% during 2025-2033. The market is primarily driven by rapid urbanization, demographic shifts towards an aging population, e-commerce growth, sustainable building development, PropTech advances, and low-interest rates. Germany leads with a 32.0% market share in 2024. The market covers residential, commercial, industrial, and land properties.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Europe Real Estate Market Key Takeaways

• The Europe real estate market size was USD 1.62 Billion in 2024.
• The market is projected to grow at a CAGR of 4.50% during 2025-2033.
• Market forecast value is USD 2.41 Billion by 2033.
• Germany held the largest market share of 32.0% in 2024.
• The residential segment was the largest, comprising approximately 45.8% of the market.
• Sales transactions accounted for about 56.8% of the market.
• Offline mode dominated the market with a 64.5% share in 2024.

Download a sample copy of the report: https://www.imarcgroup.com/Europe-Real-Estate-Market/requestsample

Market Growth Factors

Rapid urbanization (high population growth) in major cities such as London, Paris and Berlin creates increasing demand for the Europe real estate market, both for residential or commercial property. The built-up areas of the EU will grow by more than 3% from 2015 to 2030, which represents 7% of the area of the EU, following residential and infrastructure construction. This occurs while homeownership in the EU has also risen to 69% of its population, with average housing costs to own a home accounting for 19.7% of disposable income, up from 15.8% in 2010.

Growing foreign investment has also been a factor. Investors in Asia and North America are increasingly looking toward such investments in prime cities and holiday destinations, such as London, Paris and Southern Europe. Foreign direct investment (FDI) in France overall increased by 7% during 2022. The United States remained the largest foreign investor in France. It announced 280 projects. Those projects created 17107 jobs. The UK saw a 32% rise in greenfield investments to 85 Billion USD in 2022. Italy saw a 71% increase, reaching 43 Billion USD in January 2025. The investments are mainly being used for residential, commercial, and industrial development.

The combined effects of economic stability and low interest rates have made buying and investing in property easier. Euro area GDP increased by 0.9%. Unemployment remained flat with an annual average of 6.5%. EUR 320 Billion (USD 362.82 Billion) of foreign direct investments were made in commercial property. House prices increased by 6.2%. Rental yields were highest in Paris and Berlin. Government programs, such as first-time buyer tax cuts, further stimulate the market despite concerns regarding the economic downturn.

Market Segmentation

Analysis by Property

• Residential: Largest segment at around 45.8% in 2024, driven by urbanization, economic stability, rising incomes, demographic trends including aging populations and young professionals, low mortgage rates, international buyers, and expanded government housing policies.
• Commercial: Growth supported by rising demand for office spaces, retail facilities, and logistics centers, aided by tech hubs and the startup ecosystem.
• Industrial: Includes development related to logistics and warehouse spaces benefiting from infrastructure upgrades.
• Land: Demand fueled by expanding built-up areas and new infrastructure projects.

Analysis by Business

• Sales: Leading segment with 56.8% market share in 2024, driven by economic stability, urbanization, affordable mortgages, foreign investment, technological advances in property management, and increased interest in second-home ownership.
• Rental: Supported by strong demand owing to flexible housing options and changes in lifestyle preferences post-pandemic.

Analysis by Mode

• Offline: Dominated market share at 64.5% in 2024. Buyers and renters prefer personalized, face-to-face services due to transaction complexities, need for local expertise, trust, and legal requirements. Older generations and high-net-worth clients favor traditional channels.
• Online: Growing but smaller segment, benefiting from technological adoption in property search and transactions.

Regional Insights

Germany is the dominant market in Europe, holding over 32.0% share in 2024. The market growth in Germany is propelled by robust economic performance, rapid urbanization in major cities such as Munich, Frankfurt, and Berlin, and substantial foreign investment. Low interest rates and well-developed infrastructure facilitate financing and connectivity, enhancing real estate appeal. Sustainability initiatives and smart building technologies increasingly influence investment decisions.

Recent Developments & News

• March 2025: Telescope, a Norwegian prop-tech startup, secured EUR 3.7 million seed funding for its SaaS platform assessing climate and biodiversity risks to aid real estate sustainability.
• March 2025: Manova Partners launched the Manova European Logistics Real Estate Fund II (MELREF II), targeting EUR 300–500 million for institutional investors with a 5% yield focus on prime logistics assets.
• March 2025: Apollo Global Management initiated its first European real estate credit fund seeded with USD 170 million, focusing on senior loans to low-risk properties.
• December 2024: Lionel Messi's real estate investment trust, Edificio Rostower Socimi, debuted on Spain's Portfolio Stock Exchange with a market capitalization of EUR 223 million.
• June 2024: Four former executives from Cromwell Property Group and Valad Europe founded MC Property, a pan-European real estate investment firm focused on industrial properties.

Request Customization: https://www.imarcgroup.com/request?type=report&id=9423&flag=E

Key Players

• Telescope
• Manova Partners
• Apollo Global Management
• Edificio Rostower Socimi
• MC Property

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA,

Email: sales@imarcgroup.com,

Tel No: (D) +91 120 433 0800,

United States: +1-201971-6302