European real estate investment reaches €156 billion through September, according to Savills

European real estate investment reached €156 billion between January and September 2026, 4% higher than in the same period a year earlier, according to Savills estimates. This overall growth coincided with sharp differences between regions and activity that the consultancy describes as uneven.

Central and Eastern Europe leads growth

The largest increase was in Central and Eastern Europe, where investment volume rose 34% year on year. The Nordic countries followed, at 25%, and Southern Europe, at 20%. By contrast, Western Europe recorded a 5% decline.

The figures reflect the performance of different regions, not that of each country individually. Growth in Southern Europe, therefore, does not on its own show how much capital was invested in Spain: the estimates cited do not provide that breakdown.

Living accounts for more than 30% and interest in retail returns

By segment, activities grouped under the living category—which includes, among other assets, rental housing and residences—account for more than 30% of European real estate investment, according to Savills. The consultancy also reports renewed interest in retail, particularly shopping centres.

As for the origin of capital, Savills highlights flows between European markets, with the United Kingdom, France, Sweden and Germany among the countries of origin identified. US investors remain the main source of international capital into Europe; the firm expects Canadian investors to gradually increase their activity.

Savills points to wider differences between assets

The consultancy notes that expectations of a generalised compression in yields—that is, the returns required on assets—have weakened. According to Savills, upward movements could occur in more markets and segments. The firm also anticipates a more pronounced differentiation between prime and secondary properties, particularly in offices and retail.

James Burke, Savills’ global head of cross-border investment, highlights the continued flow of capital between European countries and the recovery in retail investment. Lydia Brissy, the consultancy’s European research director, argues that returns will increasingly depend on income performance, asset management and the identification of opportunities whose prices do not yet fully reflect their potential.

The investment figures are market estimates for the first nine months of the year, not final results or an indication of future returns. Nor do the trends described by Savills, on their own, determine how prices or rents will evolve in any particular country.