Why You Should Invest in Grocery Real Estate

In a world where uncertainty looms and markets fluctuate, one thing remains constant: people need to eat. Grocery stores serve as the backbone of our daily lives, providing not just food but also a sense of community and convenience. If you’re considering your next investment move, why not focus on grocery real estate in Europe? With its blend of necessity and stability, this market offers a promising avenue for savvy investors looking to reap long‐term benefits.With strong grocery markets across Europe, consistent demand from consumers and long leases with reliable tenants, investing in grocery real estate is more than just smart; it is essential in today’s economy. Let’s dive into why putting your money into this sector could be one of the best decisions you make.

Grocery Retail: A Market Built on Necessity

Grocery retail stands apart as a market fundamentally anchored in necessity. Unlike luxury goods or fleeting trends, food is a basic human requirement. This age‐old demand creates an unshakeable foundation for grocery businesses.

Consumers turn to grocery stores regardless of economic conditions. Whether times are good or bad, people prioritise their meals and essentials over other expenditures. This inherent need provides resilience against market fluctuations. According to the Appetite for Insights 2025 report by edyfi, Europe’s grocery market generated more than €1 trillion in annual sales in 2024.

Moreover, grocery shopping often fosters habits that become ingrained in daily life. Weekly trips to the store create routine and familiarity, further cementing customer loyalty.

Across Europe, this essential nature of groceries is supported by efficient supply chains, discount models, and a retail infrastructure that adapts. Investors can find peace of mind knowing that even amid uncertainties, the appetite for food remains ever‐present, making it a stable marketplace ripe for investment opportunities.

Long Leases, Strong Tenants and Predictable Income

Grocery real estate offers more than just stable demand; it brings structured revenue backed by long lease terms and high‐quality tenants.

Major European grocers such as Kaufland, Lidl, Carrefour and REWE typically enter into lease arrangements of 10 to 15 years. Many leases are indexed to inflation and may include turnover-based rent components, giving landlords a measure of protection and alignment with tenant performance.

These tenants are well established with strong operating models, deep supply chains and broad scale. Their commitment to high-footfall locations means the real estate they occupy is often anchored in communities and well positioned for the long term.

For investors, this translates into predictable income, strong occupancy rates and reduced risk of tenant turnover or vacancy.

Europe’s Expanding Grocery Market

Across Europe, grocery real estate continues to prove its strength as an investment class. Mature markets such as Germany and France remain highly resilient, driven by strong tenant performance, stable lease structures and consistent consumer demand.

At the same time, Central and Eastern Europe is becoming an increasingly attractive growth story. Markets like Poland are seeing significant investment as consumer spending rises and modern retail formats continue to expand. In 2024, Poland recorded more than €5 billion in commercial real estate investment, more than double the previous year. Prime grocery-anchored yields remain in the 6 to 7 percent range, and the country’s economy is expected to grow by 3.4 percent in 2025, supported by rising wages, infrastructure upgrades and strong domestic demand.

A Hedge Against Uncertainty

Grocery real estate thrives on a simple truth: people will always need to eat. Across Europe, the grocery retail sector combines essential demand with rental growth potential and diversification of risk.

Moreover, the future looks promising with generational shifts favouring convenience and sustainability, both of which bode well for brick-and-mortar grocery stores despite rising e-commerce trends. People will always need food; thus, investing in this sector acts as a hedge against uncertainty.

With these factors considered, aligning your investment strategy with the needs of consumers ensures you tap into an essential market, a smart choice amidst ever-changing economic landscapes.