REVIEW - CAPITAL MARKET IN EUROPE - Q2 2026
At €82.5bn the European investment volume is around 7% below the 5-year average.
At €82.5bn the European investment volume is around 7% below the 5-year average.
Office leasing activity softened in H1 2026, with take-up declining by 9% year-on-year due to a lack of large-scale deals.
BNP Paribas Real Estate Poland is pleased to announce the appointment of Małgorzata Fibakiewicz as Chief Executive Officer.
Retail investment (€37.0bn) remained relatively stable compared to last year’s volumes.
Investment market: retail real estate demonstrates resilience
Over the past 12 months, commercial real estate investment in Europe has increased by 10%, despite a more subdued first quarter (-7% compared to Q1 2025).
The European residential investment volume reached €12.0bn in Q1 2026, an increase of 21.2% compared to Q1 2025.
EUROPEAN OFFICE MARKET: A CAUTIOUS START TO THE YEAR FOR BOTH OCCUPIERS AND INVESTORS
Following a rebound in confidence at the end of 2025, the European office market stalled in Q1 2026. In a context of economic and geopolitical uncertainty, take-up declined by 16% year-on-year, driven by a slowdown in large transactions, while investment volumes fell by 13%. The start of the year has been marked by caution, with both occupiers and investors adopting a more selective approach.
The hotel market is increasingly attractive, reflected in sector gains in commercial real estate market share;
Total investment in European commercial real estate over the last twelve months to the end of March 2026 amounted to just over €181 billion, an increase of 10% year-on-year.