The European commercial real estate market is undergoing significant transformations, particularly for catering and hospitality businesses. Economic shifts, evolving consumer preferences, and sustainability initiatives are reshaping investment opportunities.
Whether you’re an entrepreneur, franchise owner, or investor, understanding property prices, demand trends, and emerging hotspots is crucial for making informed decisions. This article provides a detailed analysis of market trends and real estate pricing across major European countries.
European Catering Real Estate Market Overview
As of 2025, the European commercial property sector is valued at €1.52 trillion, with projections to reach €1.81 trillion by 2030 at a CAGR of 3.53%. Several factors are fueling this growth:
✔️ Urbanization: Expanding metropolitan areas drive demand for catering businesses.
✔️ Economic recovery: Rising consumer spending increases demand for restaurants and cafés.
✔️ Sustainability: More businesses are seeking eco-friendly properties with energy-efficient solutions.
Eastern Europe’s Emerging Market Potential
Eastern European markets, particularly Poland, Hungary, and the Czech Republic, present compelling investment opportunities. The regional commercial real estate sector is set to reach €2.74 trillion by 2025, with a steady 1.51% CAGR through 2029.
✔️ Poland: Projected GDP growth of +3.4% in 2025.
✔️ Hungary: Expected +2.3% economic growth, boosting demand for restaurant spaces.
Lower operating costs, expanding urban centers, and business-friendly policies make these markets attractive for startups and investors.
Catering Industry Trends Influencing Real Estate Demand
The catering and hospitality sectors are evolving rapidly, impacting real estate requirements. Some key trends shaping the market include:
🥗 Health-conscious dining: Growing demand for organic, vegetarian, and sustainable food options.
📦 Ghost kitchens & delivery hubs: High demand for kitchen-only spaces due to the surge in food delivery services.
🌱 Sustainable restaurant locations: Increasing preference for green buildings with energy-efficient infrastructure.
Despite temporary contractions due to economic uncertainty, the sector is poised for long-term growth, with consumer demand recovering steadily.
Commercial Property Prices for Catering Businesses in Europe
Germany: Stabilizing After Price Declines
- Recent Trend: -5.4% decline in 2024, signs of stabilization in late 2024.
- Major Cities: €2,500–€5,000 per m² (Berlin, Munich).
- Investment Outlook: Small rebound (+0.5%) expected by late 2024 as demand normalizes.
France: High Demand in Urban Centers
- Paris & Lyon: €3,500–€8,000 per m².
- Rural Areas: €1,500–€3,500 per m².
- Best Opportunities: Tourist districts, high-footfall areas.
Italy: Strong Demand in Hospitality Sectors
- Rome & Milan: €3,000–€7,000 per m².
- Smaller Cities: €1,800–€4,000 per m².
- Investment Trends: Popular among luxury and fine-dining businesses.
Spain: Coastal Regions & Tourist Hubs Thriving
- Barcelona & Madrid: €3,500–€6,500 per m².
- Tourist Areas (Costa del Sol, Ibiza): €2,000–€5,000 per m².
- Growth Potential: Significant demand for bars, restaurants, and beachside venues.
Eastern Europe: Cost-Effective & High-Growth Potential
- Warsaw, Budapest, Prague: €1,500–€4,000 per m².
- Competitive Advantage: Lower rental costs, rising consumer spending.
- Best for: Startups, fast-food chains, and mid-tier restaurants.
Investment Outlook for 2025 & Beyond
🔹 Urban hubs remain attractive, though high prices require long-term investment perspectives.
🔹 Suburban & secondary cities are gaining interest for their lower costs and growing populations.
🔹 Sustainability-focused real estate is expected to see increasing demand from eco-conscious businesses.
🔹 Flexibility in leasing is becoming a priority, with businesses opting for short-term rental agreements and pop-up restaurant models.
Final Thoughts: Where to Invest Next?
The European catering real estate market offers a diverse range of opportunities. While major cities still attract premium investments, emerging markets in Eastern Europe and suburban districts provide affordable alternatives with promising growth.
Investors should consider factors like location demand, operational costs, and long-term business viability before making a decision.
Find the Best Real Estate for Your Catering Business
Ready to explore catering real estate opportunities? Start your search today and secure the best locations across Germany, France, Italy, Spain, and beyond.
