The volume of investment in retail assets in Europe has reached 24.6 billion euros since the beginning of 2025, which represents growth of 16% compared to the same period in 2024, according to a Savills study. This value exceeds the average of the last five years for the same period by 3%.
Despite the economic challenges, this result indicates a solid recovery for the retail sector in Europe.
In Portugal, investment in commercial spaces soared 128% between January and September, standing out as a dynamic market.
Other European countries also showed significant variations, such as Belgium (+241%), the Netherlands (+180%), Denmark (+135%) and Finland (+114%).
José Galvão, Head of Retail from Savills Portugal, states that “the fundamentals that exist in the European market also apply to Portugal. The high demand for retail assets – especially in prime locations – will continue to put pressure on the value of rents and the compression of prime yields.”
Shopping centers are recovering, representing 30% of total retail investment volume, an increase from 26% last year. This growth is due to larger transactions, which reflects investor confidence and the demand for assets that meet new consumer trends.
James Burke, Director of Global Cross Border Investment from Savills, highlights that “the reduction in the unemployment rate, the rise in rents and the lack of new projects on the market are reinforcing the sector’s profitability”. Note that this scenario has attracted larger assets and portfolios, as well as a diversity of buyers.
In turn, Lydia Brissy, from Savills European Commercial Research Teampredicts that “in 2026, the improvement in economic conditions and the dynamism of the rental market will maintain the interest of investors”. It suggests that the reduction in yields should continue gradually, especially in retail parks and in street stores, due to strong demand. The shopping centers primeaccording to Brissy, should also benefit from greater institutional demand, which will help with liquidity and the decline in yields in this segment.