According to Savills latest analysis of RCA data, the share of cross border investment into European offices has risen to 39% so far this year, up from 36% in 2025.
The international real estate advisor says that demand is being underpinned by a number of pockets of capital across Europe which remain active. For example, in Sweden, Alecta recently acquired a €451m portfolio of offices in Stockholm. French SCPIs are acquisitive across geographies with offices part of a broader mix of asset classes. They continue to target new markets in Central and Eastern Europe (CEE) with a number now analysing a potential entry into the Scandinavian region.
CEE buyers are transacting within the region, with Czech and Hungarian investors also increasingly acquisitive outside CEE. Private investors continue to purchase prime stock across markets, including Pontegadea’s acquisition of Capital 8, Paris. They are being increasingly joined by an audience of core German insurance and pension money who are bidding on product selectively.
After a period of stable prime yields, higher long term borrowing costs prompted outward yield movement across selected cities in Q3 2026, according to Savills. European average prime office yields rose by 13 bps during Q3 2026 to 5.1%. Warsaw, Paris CBD, Brussels, London City, West End and Manchester moved out by 25 bps in response to the higher risk-free rates. German top 6 cities moved out by between 10 to 20 bps during Q3, Lyon moved out by 50 bps to 6.00%, while Lisbon moved out by 40 bps to 5.00%. In contrast, Stockholm moved in by 15 bps to 3.75%, reflecting the depth of domestic capital targeting prime assets in the market there.
James Burke, Director, Global Cross Border Investment at Savills, says: “Occupational markets delivering rental growth will help to maintain European offices’ appeal. The supply squeeze and tenants’ flight to quality present repositioning opportunities in or close to CBD locations while new development remains broadly unviable. Furthermore, office-based employment growth in key knowledge hubs across the professional, tech and finance sectors is expected to underpin new tenant demand.”
Mike Barnes, European Office Research Director at Savills, says: “INREV’s latest sentiment survey shows that investor sentiment picked up in the third quarter following the initial US/Iran conflict, although it remains below the 50-mark, separating expansion and contraction. Investor sentiment towards the office sector improved by 15 percentage points over the last three-month period, supported by solid occupational dynamics and rental growth prospects.”