The Europe real estate market was valued at USD 1.7 Billion in 2025 and is projected to reach USD 2.5 Billion by 2034, growing at a CAGR of 4.46% during 2026-2034. Driven by rapid urbanization, demographic shifts towards an aging population, and growth in e-commerce, the market also benefits from sustainable building development, PropTech advances, and low interest rates. Germany leads with 32% market share.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
Europe Real Estate Market Key Takeaways
- Current Market Size: USD 1.7 Billion in 2025
- CAGR: 4.46% during 2026-2034
- Forecast Period: 2026-2034
- Germany accounted for the largest market share at 32.0% in 2025.
- Residential property was the leading segment based on property, holding 45.8% of the market in 2025.
- Sales transactions comprised 56.8% of the market, supported by affordable financing and investor interest.
- Offline mode led with 64.5% market share in 2025 due to buyer preference for face-to-face interactions.
- Demand is driven by urbanization and population growth in major cities including London, Paris, and Berlin.
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Market Growth Factors
As urbanization continues and people move to cities such as London, Paris and Berlin, demand for housing and commercial real estate in Europe is expected to grow․ In 2023, the home ownership rate in the EU was 69% of the population․ Housing prices in Toronto increased by 48% and rents by 22% from 2010 to 2023․ 5․8% of GDP was invested in housing during this period despite affordability challenges․
Low interest rates throughout many European countries have led to more affordable mortgages and greater levels of home ownership and investment․ Increasing remote work flexibility has also increased demand for larger homes in suburban regions and government programs to spur housing activity, including tax credits for first time home buyers, have been implemented despite relative economic volatility․
A large proportion of the market is composed of international buyers purchasing in prime cities or holiday destinations in Southern Europe such as London, Paris and the Greek islands where prices have customarily been stable․ Strong technology clusters and co-working spaces from an increasing number of startups support the commercial market․ Provided they are well-constructed as sustainable energy-efficient buildings and have adequate infrastructure, European real estate values are increasing․
Market Segmentation
By Property:
- Residential: The largest segment in 2025, holding approximately 45.8% of the market. Growth is propelled by urbanization, economic stability, rising incomes, low interest rates, demographic shifts, and expanding housing policies.
- Commercial: Positioned as a key property category driven by workplace demand and tech hub expansions.
- Industrial: Supported by logistics and connectivity infrastructure enhancements.
- Land: Constitutes part of the property mix for development opportunities.
By Business:
- Sales: The leading business segment with a 56.8% market share in 2025, driven by economic stability, affordable financing, technological advances, and demographic trends favoring home purchases.
- Rental: Constitutes the remaining market share with ongoing demand in rental properties.
By Mode:
- Offline: Dominates with 64.5% market share in 2025, driven by buyer preference for personalized, face-to-face services, complex transaction handling, and local expertise.
- Online: Represents a growing segment due to technological advancements, but smaller compared to offline.
Regional Insights
Germany is the dominant market in Europe, accounting for over 32.0% share in 2025. Germany's real estate market benefits from strong economic performance, rapid urbanization, and significant foreign investment. Urban development in cities such as Munich, Frankfurt, and Berlin, combined with low interest rates and a stable political environment, attracts substantial property purchases and investments. Robust infrastructure and sustainability initiatives also enhance the market's appeal.
Recent Developments & News
In March 2025, Telescope, a Norwegian prop-tech startup, secured EUR 3.7 million seed funding to aid climate compliance for European real estate owners. Manova Partners launched its Manova European Logistics Real Estate Fund II, targeting EUR 300–500 million with a 5% yield focus on prime logistics assets. Apollo Global Management initiated its first European real estate credit fund, backed by USD 170 million seed funding, focusing on senior loans. December 2024 saw Lionel Messi's Edificio Rostower Socimi debut with a market cap of EUR 223 million, owning properties in Spain, Andorra, London, and Paris. In June 2024, former executives from Cromwell Property Group and Valad Europe launched MC Property, focusing on industrial real estate.
Key Players
- Telescope
- Manova Partners
- Apollo Global Management
- Edificio Rostower Socimi
- MC Property
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