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Investors showing renewed interest in retail premises

With investment in commercial real estate on the rise again in Europe, retail premises continue to recover. They showed the strongest growth of all real estate asset categories, with investment up 31% year-on-year, ahead of hotels (+3%), offices (+13%) and logistics (+19%).

With € 36bn invested over the last 12 months, retail remains in third place in terms of amounts, accounting for 22% of investment (vs. 15% at end 2021 in the depths of the Covid crisis), drawing close to offices (27%) and logistics (26%). Hotels continue to perform well, up 13% (vs. a 10-year average of 8%).

The three largest European markets, i.e. the UK, Germany and France, still account for the lion’s share of investment in retail, but Spain, Italy and Poland also performed strongly, with year-on-year increases of 25%, 311% and 382% respectively.

retail ENG 2025

 

“Retail’s current healthy trend applied to all segments. As such, investment in out-of-town retail in the main European cities[1] came in at € 10.4bn over the last 12 months, up 12% year-on-year. This segment has the advantage of investment opportunities across a wide range of unit sizes, with lower entry prices than other retail assets. It was also particularly resilient during the Covid crisis and the recent inflationary period”, remarks Patrick Delcol, Head of European Coverage of Retail, Logistics and Hospitality for BNP Paribas Real Estate.

[1] Germany, Spain, France, Italy, Poland and the UK

High street deals are also up sharply (+33%) compared with last year, with € 9.4bn invested in the main European countries. Luxury sector contributed significantly to this growth, although this niche market of investor-occupiers is expected to slow somewhat.

Lastly, shopping centres showed the strongest growth (+81%) with € 7.2bn invested over the last 12 months, showing investors’ growing interest in this retail segment. There were some big shopping centre deals in Iberia in Q1 2025, where the asset category has represented 54% of retail investment over the last 12 months.

Download the press release for more insights

Discover more numbers and facts about the out of town retailers and shopping centres, as well as the expected outlook for the retail sector. 

BNP Paribas Real Estate Press
Media Relations
press.rebe@realestate.bnpparibas
Download the press release
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