Contact médias : Carol Galivel - 01 41 05 02 02 - 06 09 05 48 63 – galivel@galivel.com
3 déc. 25
The European Investment Atlats
MOMENTUM CONTINUES TO BUILD
The European Commercial Real Estate (CRE) market remains on the verge of a broadening recovery, with an increasing number of green shoots across prime operating fundamentals and capital markets. The latest TIME score and Fair Value Index reinforce the current market phase as a crucial window for strategic investment, and growing evidence shows capitalisation of this opportunity.
While macroeconomic headwinds persist, the landscape is improving. Easing credit conditions and improved liquidity have begun to lift investor sentiment, even as global growth remains modest. This environment is fostering a more optimistic outlook, with investors increasingly willing to deploy capital and take calculated risks, especially in markets where fundamentals are strengthening.
In Q3 2025, the European All -Property TIME Score posted small gains compared to Q1, rising from 3.0 to 3.2 and remaining at the inflection point of the cycle. Meanwhile, the European Fair Value Index (FVI) edged down slightly to 89, from 91 in the previous quarter. The analysis indicates that 78% of tracked markets are still underpriced, highlighting a broad spectrum of investment opportunities across Europe.
Looking at the TIME Score and FVI matrix, we see a broadly positive trend across all sectors. Logistics, retail, and hospitality now firmly occupy the ‘sweet spot’ for investment, reflecting sustained momentum and resilience. Despite showing improvements from the previous update in Q1, residential and office assets remain within the ‘strategic matrix’.
Debt capit l is leading the recovery, with lenders driving price discovery and liquidity ahead of equity investors. Debt providers have reengaged quickly, using refinancing and restructuring to gain market share and set new pricing levels. This early activity is shaping valuations and enabling new transaction strategies for investors.
There is clear improvement in investor sentiment, driven by increased transactional activity, higher demand, and debt availability. Fundraising has rebounded, with managers adapting sector strategies to remain flexible to shifting market conditions. Core funds are cautiously returning, focusing on secure income and diversification. While risk aversion and price sensitivity persist, the market is stabilising, and recovery is expected to continue through 2026
While macroeconomic headwinds persist, the landscape is improving. Easing credit conditions and improved liquidity have begun to lift investor sentiment, even as global growth remains modest. This environment is fostering a more optimistic outlook, with investors increasingly willing to deploy capital and take calculated risks, especially in markets where fundamentals are strengthening.
In Q3 2025, the European All -Property TIME Score posted small gains compared to Q1, rising from 3.0 to 3.2 and remaining at the inflection point of the cycle. Meanwhile, the European Fair Value Index (FVI) edged down slightly to 89, from 91 in the previous quarter. The analysis indicates that 78% of tracked markets are still underpriced, highlighting a broad spectrum of investment opportunities across Europe.
Looking at the TIME Score and FVI matrix, we see a broadly positive trend across all sectors. Logistics, retail, and hospitality now firmly occupy the ‘sweet spot’ for investment, reflecting sustained momentum and resilience. Despite showing improvements from the previous update in Q1, residential and office assets remain within the ‘strategic matrix’.
Debt capit l is leading the recovery, with lenders driving price discovery and liquidity ahead of equity investors. Debt providers have reengaged quickly, using refinancing and restructuring to gain market share and set new pricing levels. This early activity is shaping valuations and enabling new transaction strategies for investors.
There is clear improvement in investor sentiment, driven by increased transactional activity, higher demand, and debt availability. Fundraising has rebounded, with managers adapting sector strategies to remain flexible to shifting market conditions. Core funds are cautiously returning, focusing on secure income and diversification. While risk aversion and price sensitivity persist, the market is stabilising, and recovery is expected to continue through 2026
