Institutional investors are returning to key European markets, and transaction volumes are expected to rise steadily after a period of reassessment in 2024-2025, according to a Colliers report.
"Investors are becoming more selective and strategic, exploring opportunities beyond domestic and U.S. markets into Europe. More are pursuing approaches, from upgrading assets to forming joint ventures," said Luke Dawson, Head of Global and EMEA Capital Markets at Colliers. Global fundraising reached $165 billion by the end of Q3 2025, matching the 2024 total, but with EMEA's proportion surging to 50% year on year, while North America's fell to 40%.
After being overshadowed by industrial and logistics assets during the pandemic, office investment is returning to tier-one and tier-two cities. Large transactions are back, particularly in London, Paris, and Munich, with deals now commonly exceeding $133 million. "The office sector is regaining momentum across Europe's cities. Investors are increasingly drawn to prime and value-add opportunities, including refurbishments that enhance sustainability," said Katarína Brydone, Director of Colliers in the Czech Republic.
The industrial and logistics sector continues to demonstrate a strong risk-return profile. Total investment in 2024 reached €40-50 billion, supported by e-commerce expansion and NATO's planned €50 billion annual infrastructure investment over the next decade. CEE, including Czechia, is seeing increased portfolio activity, though high valuations and limited prime asset supply may cap volumes in some core markets.
Data centres are experiencing fundraising levels in EMEA, driven by AI, tech, and defence sector demand. Self-storage is emerging as a growth opportunity, while purpose-built student accommodation is catching up with multifamily, particularly in the UK, Germany, and Italy. Retail investment continues to offer stable returns, with grocery/supermarkets and high street retail capturing almost half of cross-border investors' preferences in EMEA.
