“Office markets continued to suffer from the uncertain political and economic environment in some European countries, and investors remained cautious on the asset category, which has been affected by structural changes in the way people work over the last five years. Overall, 2024 ended with a stabilisation in take-up and a slight increase in the volumes invested in offices. There could be a more pronounced recovery in 2025 if the economic and financial situation lastingly improves.” says Argie Taylor, Head of BNP Paribas Real Estate’s International Investment Group.

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) presents its Lighthouse Report for H1 2025, an outlook for the European real estate market using its in-house forecasts, analysis, and the expertise of its local teams. In this tenth edition, BNP Paribas REIM defines its convictions and provides the investment strategies to adopt considering the expected macroeconomic and financial environment for 2025.

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) is pressing ahead with its development strategy centred on its customers and partners.

As European commercial real estate markets adjust, the different asset categories are following diverging trajectories: retail is still in third place, accounting for around 20% of overall investment (vs. 14% at the end of the Covid crisis in late 2021), behind logistics assets, which remain popular, and offices, which are still struggling. Indeed, for the first time, investment in offices and logistics is neck and neck, with each accounting for 25% of overall investment over the last 12 months. After retail premises come hotels, which have flourished on the back of keener investor interest; investment in the category has surged by 40% year-on-year and they now account for 12% of allocations.