Europe's outlet centre market is holding steady even as broader brick-and-mortar retail faces pressure from shop closures and weak consumer spending. According to research by Wiesbaden-based consultancy ecostra, the majority of outlet centres across the continent report rising footfall and turnover, with significant vacancy rates largely absent. The pipeline of new projects has, however, thinned considerably.
"This may be because the outlet markets in Western and Southern European countries, in particular, are showing increasing signs of market saturation. It may also be because planning and approval procedures in many of these countries are extremely lengthy and costly, which is particularly true of Germany. And the capital and construction costs, which have risen significantly in the meantime, also play a not insignificant role here," explained Dr Joachim Will, Managing Director of ecostra.
Since the start of 2025, only one new outlet centre has opened in Europe: the Designer Outlet Kraków in Poland, which launched in May 2025 with approximately 12,000 sqm of lettable area and has approval to expand to around 20,000 sqm GLA. The broader pipeline now stands at roughly 20 planned projects across Europe, seven of which are in Germany. "Just 10 years ago, in 2016, the number of new projects in Europe stood at 62, with 20 locations in Germany alone. Many projects have fallen by the wayside," said Will. Ecostra currently counts 195 outlet centres in operation across Europe, covering a combined retail sales area of over 3.2 million sqm. The United Kingdom leads by number of centres, followed by Italy, France and Spain, with Germany ranking fifth with 19 centres and around 275,000 sqm of outlet sales area. Expansion projects at existing sites in Montabaur and Zweibrücken have received planning permission, though the Zweibrücken scheme still faces legal challenges from neighbouring municipalities.
While new development has slowed, transaction activity has accelerated sharply. "Not only family offices, but an increasing number of institutional investors have discovered outlet centres as an attractive investment opportunity and are prepared to dig deep into their pockets for successful and well-positioned sites," said Will. Investment volumes reached approximately €1.8 billion in 2024, a figure that was surpassed in 2025. In the first half of 2026 alone, outlet centres worth just under €1 billion have already changed hands.
Among the most active buyers, France's Frey Group, together with Cale Street Partners, acquired a portfolio of three outlet centres in northern Italy from Blackstone, having previously purchased the Designer Outlet Berlin from Nuveen Real Estate. VIA Outlets, owned by Dutch pension fund APG, acquired a large outlet centre near Milan. On the American side, Texan fund TPG acquired the Designer Outlet Neumünster, while Simon Property Group added two sites in northern Italy. In Russia, the Hines and Belaya Dacha joint venture sold two outlet centres to a domestic investor in what was reportedly the largest property transaction of any kind in that market in 2025. In the United Kingdom, Fraser Group, controlled by Mike Ashley, has assembled a portfolio of six outlet centres and is continuing to acquire. "A good outlet centre provides a stabilising anchor for any portfolio. That's something you can't say about too many retail properties at the moment," said Will.
