European Leading Indicators - October 2025

European Leading Indicators - October 2025

European CRE investment, prime office rents & growth outlook  

Written by Judith Fischer, Partner, European Commercial Research

Key insights:

• Total European (excl.UK) CRE investment reached €96bn in the first nine months of the year, according to preliminary Q3 MSCI RCA data, up 3% y/y. Cross-border activity increased by 5% y/y, accounting for 44% of the total.
• Average European prime office rents rose 8.9% y/y in Q2 2025, outpacing logistics since 2023. The strong rental growth, particularly in key markets such as Paris and Munich, where prime office rents have reached record highs, is drawing renewed investor interest in the sector.
• The IMF has raised its forecast for Eurozone real GDP growth in 2025 to 1.2%, up from its July projection and an acceleration from 0.9% growth in 2024. Upward adjustments were also made for Germany, France and Spain, although prolonged uncertainty remains a downside risk.  

Explore the full European Leading Indicators dashboard for an in-depth analysis of market dynamics across Europe, including comprehensive data tables, interactive charts, and detailed commentary on investment trends, prime office rents, and growth projections.