Global investment capital is once again heading towards European real estate markets, after a period of restraint and cautious investments. Data from the latest Global Capital Flows survey by consultancy Colliers shows that the EMEA (Europe, Middle East and Africa) region is gradually becoming the main focus of investors in the commercial property sector.
Capital is returning to Europe
After 2 years in which investment strategies were more conservative and strongly focused on the US, 2025 is proving to be a turning point for European real estate markets. Capital raised for property investments in the EMEA region has grown by 52% year-on-year, indicating a significant recovery in investor confidence.
At the same time, actual investment volumes have increased by around 8.6%, indicating that investor interest is growing faster than the number of deals. This is a signal of a gradual recovery in market liquidity and a reassessment of the prices of key European assets.
Selective reallocation of investments
However, the market recovery has not been uniform. Investors are taking a much more cautious approach and are directing their capital towards markets and assets where prices have already corrected and the prospects for profitability are clearer.
According to Colliers analysts, the EMEA region continues to play a key role in global cross-border investments, with seven of the ten most attractive markets for international capital located in Europe, the Middle East and Africa.
Offices are leading the recovery
One of the most interesting trends is the development of the office segment. While parts of North America remain under pressure, in the EMEA region office real estate has become the best performing segment in the last two years, overtaking industrial and residential assets.
Investors are mainly targeting prime office buildings in major European cities, especially assets with sustainable features and potential for modernization. This is stimulating investment in renovations and refurbishments of existing buildings.
New segments attract capital
In addition to traditional assets such as office, industrial and residential properties, data centers are also attracting increasing interest. This segment is developing rapidly due to the growing demand for digital infrastructure, stimulated by the development of artificial intelligence and cloud technologies.
Outlook for 2026
Analysts expect activity in the real estate market in Europe to increase in the coming years. The combination of stabilizing financing, better matching of price expectations of buyers and sellers, and gradual recovery of liquidity creates the prerequisites for a more dynamic investment market in 2026.
Nevertheless, investors remain cautious and continue to follow a more disciplined approach, putting profitability first, followed by growth potential and asset liquidity.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen at imot.bg