European Leading Indicators | European CRE investment, prime office rents & growth outlook
16 October 2025
Here we look at the European leading indicators in the world of economics.
For in-depth analysis into commodities, trade, equities and more with a focus on Europe
Key Insights:
- Total European (excl.UK) CRE investment reached €96bn in the first nine months of the year, according to preliminary Q3 MSCI RCA data, up 3% y/y. Cross-border activity increased by 5% y/y, accounting for 44% of the total.
- Average European prime office rents rose 8.9% y/y in Q2 2025, outpacing logistics since 2023. The strong rental growth, particularly in key markets such as Paris and Munich, where prime office rents have reached record highs, is drawing renewed investor interest in the sector.
- The IMF has raised its forecast for Eurozone real GDP growth in 2025 to 1.2%, up from its July projection and an acceleration from 0.9% growth in 2024. Upward adjustments were also made for Germany, France and Spain, although prolonged uncertainty remains a downside risk.
