GRI InstituteGRI Barometer: European Real Estate Outlook H2 2025
The most senior industry leaders active across Europe reveal their expectations and sentiments for the future of the market
September 25, 2025Real Estate
Written by Rory Hickman
As first revealed by Gustavo Favaron, Global CEO of the GRI Institute, during Europe GRI 2025 in Paris, the results of the latest GRI Barometer provide an insightful look at expectations of Europe’s top real estate executives. While optimism for robust growth is tempered, the overall sentiment remains one of cautious resilience.
Companies are moving forward with investments and project launches, albeit with adjustments to product mixes and a focus on strategic opportunities. Political uncertainty, geopolitical tensions, and regulatory hurdles are identified as the primary concerns that shape decision-making, but a clear commitment to the region persists.
With an ongoing affordable housing crisis across Europe, the key areas of opportunity lie in residential real estate, particularly multi-family and build-to-rent (BTR), alongside alternatives like student housing, senior living, and healthcare. Data centres and hospitality are also emerging as strong contenders, while more traditional sectors like retail and office spaces continue to face challenges.
Despite the uncertainties surrounding inflation and interest rates, there is confidence in a stabilising monetary environment, and most expect inflation to remain under control over the next year, though supply chain disruptions and rising costs remain risks.
Geographically, Madrid leads the way, reflecting Spain's growing appeal, followed by strong interest in Lisbon, Milan, and Paris. London and Berlin continue to attract attention, with Warsaw showing the increasing importance of Central and Eastern Europe.
The findings suggest that while traditional hubs maintain their relevance, investor interest is diversifying, particularly towards markets with strong growth potential and alignment with long-term trends in sustainability, digitalisation, and urban transformation.
Access all detailed results and analysis of the GRI Barometer in the full report below:
As first revealed by Gustavo Favaron, Global CEO of the GRI Institute, during Europe GRI 2025 in Paris, the results of the latest GRI Barometer provide an insightful look at expectations of Europe’s top real estate executives. While optimism for robust growth is tempered, the overall sentiment remains one of cautious resilience.
Companies are moving forward with investments and project launches, albeit with adjustments to product mixes and a focus on strategic opportunities. Political uncertainty, geopolitical tensions, and regulatory hurdles are identified as the primary concerns that shape decision-making, but a clear commitment to the region persists.
Gustavo Favaron, Global CEO of the GRI Institute, presented the results of the latest GRI Barometer during Europe GRI 2025 in Paris (GRI Institute)
With an ongoing affordable housing crisis across Europe, the key areas of opportunity lie in residential real estate, particularly multi-family and build-to-rent (BTR), alongside alternatives like student housing, senior living, and healthcare. Data centres and hospitality are also emerging as strong contenders, while more traditional sectors like retail and office spaces continue to face challenges.
Despite the uncertainties surrounding inflation and interest rates, there is confidence in a stabilising monetary environment, and most expect inflation to remain under control over the next year, though supply chain disruptions and rising costs remain risks.
Geographically, Madrid leads the way, reflecting Spain's growing appeal, followed by strong interest in Lisbon, Milan, and Paris. London and Berlin continue to attract attention, with Warsaw showing the increasing importance of Central and Eastern Europe.
The findings suggest that while traditional hubs maintain their relevance, investor interest is diversifying, particularly towards markets with strong growth potential and alignment with long-term trends in sustainability, digitalisation, and urban transformation.
Access all detailed results and analysis of the GRI Barometer in the full report below: