Investing in the European Real Estate Market: The Best Time is Now
- Redação Mudei e Agora
- Jul 15
- 1 min read
After a period of sharply rising interest rates, the ECB's interest rate cuts against a backdrop of slowing global inflation create favorable conditions for investment, especially in sectors such as logistics, residential, office, and retail.
The following are the three underlying trends:
European interest rates below 2%, in contrast to high interest rates in the US, making the continent attractive for its risk-adjusted yield;
A persistent shortage of new projects, a regulatory impact, and high construction costs, which strengthen the value of existing assets;
Cross-border capital growth, with international funds focusing on prime real estate in European capitals, and "off-market" opportunities that offer above-average returns.
Areas such as France, Benelux, and Italy are emerging, especially in the logistics sector, which is expected to grow around 20% in rents by 2029.
In investment, four categories are distinguished:
Core/core-plus, with a stable income stream;
Value-add, with potential for appreciation through remodeling or repositioning;
Alternatives, such as student housing, data centers, and healthcare;
Off-market, which offers less competitive opportunities and better profitability.
The first quarter of 2025 saw a 28% increase in European real estate investment, surpassing €50 billion, and highlighted countries such as Portugal, France, and Ireland as leaders in this recovery.
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Source: idealista
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