What Path Forward for CoStar in Europe?

While recently making headlines in Australia with the acquisition of Domain and in the U.S. through its legal battle with Zillow, the American giant CoStar continues to nurture strong ambitions in Europe. Beyond its purchase of the UK’s N2 marketplace in 2023 and the announced launch of its platform LoopNet in Spain in April 2025, the group now has two major strategic avenues to accelerate its growth across the continent.

Commercial Real Estate as CoStar’s European Trojan Horse?

Unlike its approach in the U.S. and Australia, CoStar’s European strategy initially focuses on commercial real estate rather than residential listings. Its first move on the continent was the acquisition in 2022 of BureauxLocaux in France, a leading player in office and business property listings. This investment allowed CoStar to understand the dynamics of a fundamentally different market and gradually build a tailored value proposition for Europe.

BureauxLocaux remains a strong force in France, ranking third behind LeBonCoin but very close to local giant SeLoger in number of agents and in traffic in the niche of business real estate. Outside France, CoStar has expanded its commercial offering under the LoopNet brand, first in the UK and more recently in Spain. In Britain, the platform has already established itself as the second-largest player, behind Rightmove but ahead of ZPG sites Zoopla and PrimeLocations), thanks to a robust inventory and quality agent network.

Spain is still in its early stages, but the challenge will be significant given the dominance of Idealista, quite far ahead of Fotocasa and Pisos (recently acquired by Scout24 and Immobiliare, respectively). Beyond these three countries, CoStar is likely to target major European economies such as Germany—where Scout24 leads the market and enjoys a strong position in commercial listings—and Italy, where Immobiliare remains the national leader but faces growing competition from Idealista. Smaller yet highly profitable markets like the Netherlands, Sweden, and Norway could also attract CoStar’s attention. These countries, dominated by local monopolistic players, offer high revenue per agency and strong margins—exactly the type of competition opportunity CoStar has historically pursued.

Residential Market: A Playbook of Strategic Acquisitions

Alongside its commercial push, CoStar could replicate its proven strategy of acquiring second-tier residential platforms to challenge market leaders. This approach began in 2023 with the purchase of OnTheMarket in the UK. After two years of investment, the gap between OnTheMarket and Zoopla has nearly closed, positioning CoStar as a potential credible challenger to Rightmove in the long term.

Future targets? Germany stands out as the most promising opportunity. The recent acquisition of Aviv by KKR and the potential breakup of its assets could open doors for CoStar to acquire platforms like Immowelt or Immonet—ideal stepping stones to challenge ImmoScout24’s dominant position. France’s SeLoger, currently number two behind Adevinta’s LeBonCoin, could also be a strategic asset given its relatively narrow gap with the leader.

Other possibilities include Belgium’s Immoweb and third-tier platforms such as agents network  assets like Bien’ici in France or Wikicasa in Italy, which could serve as an alternative entry points similar to what the group experienced with OnTheMarket in the UK..

A Market Ripe for Disruption

Europe represents CoStar’s third pillar in its global strategy to reshape the real estate classifieds industry. With a still quite fragmented market, strong incumbents, and high-margin opportunities, the continent offers fertile ground for CoStar’s dual approach: leveraging commercial real estate as a Trojan horse while pursuing targeted acquisitions in residential listings. The question is not whether CoStar will expand aggressively in Europe - but how quickly and through which doors it will enter.

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