Total commercial real estate volumes amount to €23.8 billion in the UK, €8.8 billion in Germany, €5.0 billion in France, and €4.9 billion in Spain. In several markets, retail accounted for more than a quarter of total investment volume – including 38% in the Czech Republic and 27% in both Germany and Italy – while prime retail yields stabilized following earlier repricing. Together, these factors made Q4 2025 the strongest quarter of the year for retail real estate investment.
Retail Regains Momentum in the Investment Market
As reported in the “Focus Estate Fund Quarterly Litmus Paper, Q4 2025”, total commercial real estate investment volumes in Q4 2025 reached:
- €23,787 million in the UK
- €8,781 million in Germany
- €5,015 million in France
- €4,891 million in Spain
- €4,500 million in Italy
- €1,865 million in Poland
- €1,800 million in the Czech Republic
- €829 million in Portugal
Retail represented a significant share of these totals: 38% in the Czech Republic, 27% in Germany and Italy, 25% in Portugal and 22% in Poland. This confirms that retail has once again become one of the key contributors to overall investment activity in Europe.
The strong Q4 performance followed a gradual recovery in transaction volumes earlier in 2025, as improved financing visibility and pricing alignment between buyers and sellers translated into increased deal flow.
Retail Parks Lead Investor Demand
Investor appetite was particularly strong for retail parks and dominant regional assets, especially grocery-anchored and convenience-led schemes with stable cash flows. According to the “Focus Estate Fund Quarterly Litmus Paper, Q4 2025”, retail parks generally demonstrated stronger liquidity and demand compared to traditional shopping centres, while secondary assets continued to trade selectively.
Serhii Sushko, Investment Director at Focus Estate Fund, comments: “Retail investment volumes across Europe rebounded in 2025, with Q4 emerging as the strongest quarter of the year in terms of liquidity. Shopping centres and particularly retail parks benefited from improved financing conditions and more predictable market pricing. Investor activity concentrated on dominant regional assets and grocery-anchored or convenience-led schemes with stable cash flows, while secondary properties continued to trade selectively. Across most markets, prime retail yields in both segments remained steady in Q4 2025, following earlier repricing phases.”
Stable Yields Signal the End of Repricing
Prime yields for both shopping centres and retail parks remained stable across most analysed markets in Q4 2025, confirming that the main repricing phase has largely played out. The stabilisation of yields supported renewed investor confidence and facilitated transaction execution in the final quarter of the year.
Solid Macroeconomic Backdrop Supports Retail
Macroeconomic fundamentals also reinforced investor sentiment. As highlighted in the “Focus Estate Fund Quarterly Litmus Paper, Q4 2025”, preliminary year-on-year GDP growth in Q4 2025 reached 4.0% in Poland, 2.6% in Spain and 2.4% in the Czech Republic. Unemployment remained low at 3.2% in both Poland and the Czech Republic.
Stable economic growth, controlled inflation and resilient labour markets across much of Europe strengthened the investment case for retail assets, particularly those offering defensive income profiles.
The “Focus Estate Fund Quarterly Litmus Paper, Q4 2025” provides a comprehensive overview of retail real estate investment markets across selected EU countries and the UK, including transaction volumes, prime yields and key macroeconomic indicators
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