Houlihan Lokey – European Real Estate Market Update, Summer 2025

The main theme of the report is the state and prospects of the real estate market in Europe in 2025.

Key findings include: The European economy continues to recover, but investors remain cautious due to macroeconomic and geopolitical risks. Recovery and resilience are evident in several European economies despite ongoing fragmentation. Inflation in Europe in June 2025 was 2%, aligning with the ECB's target level. The ECB continues to ease monetary policy, which may lead to a slowdown or pause in the coming months. Risks to growth persist due to trade tensions and geopolitical instability. In 2024, capital raising activity in illiquid real estate in Europe remained low. By April 2025, 40% of the total capital raised had already been invested, indicating a gradual market recovery.