Market Size of Europe Commercial Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.47 Trillion |
| Market Size (2029) | USD 1.75 Trillion |
| CAGR (2024 - 2029) | 3.53 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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European Commercial Real Estate Market Analysis
The Europe Commercial Real Estate Market size is estimated at USD 1.47 trillion in 2024, and is expected to reach USD 1.75 trillion by 2029, growing at a CAGR of 3.53% during the forecast period (2024-2029).
The COVID-19 pandemic had a huge impact on the European commercial real estate sector. Although the crisis impacted the European economy and investment sentiment among investors and occupiers, the sector is currently recovering but has not reached the pre-pandemic levels.
- According to the European Public Real Estate Association, the European Union's commercial real estate sector contributed a combined GDP of more than USD 15.3 trillion in 2021. The sector had 177 REITs, with a combined market cap of USD 133 billion, and 261 Non-REITs, with a combined market cap of USD 308 billion.
- Germany continues to lead the commercial real estate sector, despite the declining growth rate in the market. The growth rate in Q4 2021 declined by 8% compared to Q4 2020 but experienced a growth of 14% compared to pre-pandemic levels.
- The United Kingdom is the next leading country in the market, with an annual growth rate of more than 25% in Q4 2021 compared to the same quarter in 2020. Moreover, countries like Sweden, the United Kingdom, Belgium, and Norway saw the highest growth in the sector. Meanwhile, France, Spain, and the Netherlands experienced a slow recovery due to a decline in the growth of the retail sector.
European Commercial Real Estate Industry Segmentation
Commercial real estate (CRE) refers to property for business-related purposes or to provide a workspace rather than a living space. The report on the European commercial real estate market includes market dynamics, technological trends, insights, and government initiatives related to the market.
The report covers segmentation by type (offices, retail, industrial, logistics, multi-family, and hospitality) and by country (United Kingdom, Germany, France, Russia, and the Rest of Europe). The report offers market size and forecasts for the Europe Commercial Real Estate market in value (USD billion) for all the above segments.
| By Type | |
| Offices | |
| Retail | |
| Industrial | |
| Logistics | |
| Multi-family | |
| Hospitality |
| By Country | |
| United Kingdom | |
| Germany | |
| France | |
| Russia | |
| Rest of Europe |
Europe Commercial Real Estate Market Size Summary
The European Commercial Real Estate Market is projected to witness steady growth over the forecast period. The market, which was significantly impacted by the COVID-19 pandemic, is currently in a recovery phase, though it has yet to return to pre-pandemic levels. Notably, the commercial real estate sector in the European Union made a considerable contribution to the combined GDP. Germany continues to be a leader in this sector, despite a decline in the market's growth rate. The United Kingdom follows closely, with a significant annual growth rate. Trends in the European Commercial Real Estate Market indicate an increase in investments in the sector, suggesting a strong rebound from the impact of the pandemic. The logistics market, driven by e-commerce, is also experiencing significant growth. The market is highly competitive and fragmented, with key players strategically investing in partnerships, mergers, and acquisitions to expand their businesses. The office, industry, and logistics sectors are the most invested segments in the market, driven by robust office space take-up and a rise in demand for logistic warehouses.
Explore MoreEurope Commercial Real Estate Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Market Opportunities
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1.4 Industry Attractiveness - Porter's Five Force Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Offices
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2.1.2 Retail
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2.1.3 Industrial
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2.1.4 Logistics
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2.1.5 Multi-family
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2.1.6 Hospitality
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2.2 By Country
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2.2.1 United Kingdom
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2.2.2 Germany
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2.2.3 France
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2.2.4 Russia
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2.2.5 Rest of Europe
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Europe Commercial Real Estate Market Size FAQs
How big is the Europe Commercial Real Estate Market?
The Europe Commercial Real Estate Market size is expected to reach USD 1.47 trillion in 2024 and grow at a CAGR of 3.53% to reach USD 1.75 trillion by 2029.
What is the current Europe Commercial Real Estate Market size?
In 2024, the Europe Commercial Real Estate Market size is expected to reach USD 1.47 trillion.
