Monday, 9 March 2026
Retail real estate investment activity across Europe increased toward the end of 2025, with the fourth quarter recording the strongest level of transactions during the year in several markets, according to the Focus Estate Fund Quarterly Litmus Paper, Q4 2025.
Total commercial real estate investment volumes in the final quarter reached €23.8 billion in the United Kingdom, €8.8 billion in Germany, €5.0 billion in France and €4.9 billion in Spain. Italy recorded approximately €4.5 billion in investment activity, while Poland reached €1.87 billion, the Czech Republic €1.8 billion and Portugal €829 million.
Retail assets accounted for a notable share of investment activity in several markets. The sector represented 38 percent of total commercial real estate investment in the Czech Republic, 27 percent in both Germany and Italy, 25 percent in Portugal and 22 percent in Poland during the quarter. In the United Kingdom and France, retail accounted for around 11 percent of investment volumes, while Spain recorded approximately 15 percent.
According to the report, the increase in activity reflects a gradual improvement in market conditions during 2025. Financing visibility improved during the year and price expectations between buyers and sellers began to align more closely, supporting a higher number of transactions toward the end of the year.
Investor demand remained strongest for retail parks and dominant regional retail assets, particularly grocery-anchored schemes and convenience-led formats with stable income profiles. These assets demonstrated stronger liquidity and more consistent demand compared with traditional shopping centres, while secondary retail properties continued to change hands more selectively.
Serhii Sushko, Investment Director at Focus Estate Fund, noted that retail investment volumes across Europe recovered during 2025, with the final quarter showing the highest level of liquidity. He added that retail parks and large regional shopping centres benefited from more predictable financing conditions and market pricing, while investors continued to focus on assets with stable cash flows and established tenant bases.
Prime yields for both shopping centres and retail parks remained largely unchanged in most analysed markets during the fourth quarter, suggesting that the major repricing phase that affected retail property over the previous two years had largely concluded.
Macroeconomic conditions also supported investor sentiment. In the fourth quarter of 2025, year-on-year GDP growth reached 4.0 percent in Poland, 2.6 percent in Spain and 2.4 percent in the Czech Republic, while unemployment remained relatively low in Central European markets, including 3.2 percent in both Poland and the Czech Republic.
The report indicates that stable economic growth, moderate inflation levels and resilient labour markets contributed to maintaining investor interest in retail property, particularly in assets offering defensive income characteristics.
The Focus Estate Fund Quarterly Litmus Paper reviews retail real estate investment trends across selected European Union markets and the United Kingdom, combining transaction data with macroeconomic indicators to assess the investment environment in the sector.
Photo: Serhii Sushko, Investment Director at Focus Estate Fund
