European office cross-border investment activity picks up, Savills says
XLRE•European office cross-border investment activity continued to pick up, supported by active European capital. Average prime office yields rose 13 basis points to 5.1% in the third quarter of 2026, while Stockholm’s fell 15 basis points to 3.75%.
1. Investment and yields
European office cross-border investment activity continued to pick up, supported by active European capital. Average European prime office yields rose 13 basis points to 5.1% in the third quarter of 2026 as higher long-term borrowing costs pressured valuations. Stockholm bucked the trend, with yields falling 15 basis points to 3.75%, reflecting strong domestic demand for prime assets.
2. Investor sentiment
French SCPIs are targeting new markets, while Czech and Hungarian investors are increasingly buying outside Central and Eastern Europe. Office investor sentiment improved 15 percentage points over three months, supported by solid occupier demand and rental growth prospects.
