European Outlook 2025

Discover Europe’s Real Estate Potential in 2025

Europe’s real estate market is poised for recovery, driven by falling interest rates, stabilizing valuations, and resilient demand in key sectors like logistics and living. Knight Frank’s latest report highlights the opportunities and trends shaping the continent, with Southern Europe and the Nordics leading economic growth. Explore how investors can capitalize on a dynamic, evolving market.

Nordic Summary
The Nordic economies are entering an exciting period, with growth expected to exceed the Eurozone average by 2025. What are the driving forces behind this positive development, and which sectors and investments are likely to benefit the most? Read on for an overview of the region’s future prospects.

Key findings

• Economic Conditions: Falling interest rates and stabilizing valuations create a favorable environment for investments. Southern Europe and the Nordics are expected to lead economic growth in 2025.

• Investments: Focus remains on sectors such as logistics and residential, driven by demand supported by structural shifts. Data centers and digital infrastructure are on the rise, particularly with the growth of AI.

• Geographical Highlights: Spain, Italy, and Germany stand out for strong demand, while the Netherlands and France are seeing increased activity in specific sectors.

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