Midpoint 2025 | European Economic & CRE Outlook
From Caution to Strategic Conviction
As we reach the midpoint of 2025, the commercial real estate landscape continues to evolve in response to shifting economic forces, dynamic investor preferences and changing occupier demands. Our Midpoint report provides analysis into these developments—examining what has changed, emerging trends, and what it means for the remainder of this year and beyond.
Key Takeaways
Economy
Near-term growth outlook downgraded as weakening forward indicators point to softer momentum through the second half of 2025. With inflation largely in check, central banks will have room to support growth through rate cuts, while a shift toward expansionary fiscal policy paves the way for recovery in 2026.
Capital Markets
Market volatility and bond yield fluctuations are impacting pricing and investor strategy. Still, historical resilience during periods of market dislocation suggest potential for recovery and outperformance as conditions improve into 2026.
Industrial
Industrial take-up is stabilising near pre-pandemic levels. Easing monetary policy, stabilising demand, and tight supply are expected to support recovery into 2026.
