Retail investment (€37.2 bn) grew by 5% in 2025 compared to last year. After two years of guarded investment activity, retail has now regained momentum and is attracting more investors’ attention. Investor confidence has improved with their focus directed towards good value assets with growth potential. Occupier fundamentals, retail sales especially, are now closer to pre-pandemic levels and expanding.
The investor perception is that the sector has overcome many of its restructuring challenges caused by growth in internet shopping. In 2025, retail held a share of 21% in total commercial real estate investment. The steady uptick in market share, in recent years, was mostly driven by the luxury sector.
2025 saw investors return to buying shopping centres (€8.2bn). The investment rationale focuses on shopping centres’ locational advantages in an omnichannel environment as the right ones offer functionality and flexibility to occupiers.
