Emerging Trends in Real Estate® Europe 2026

Report Summary: : The overriding sentiment for European real estate in 2026 is shifting from last year's cautious optimism to something more pragmatic, with the likelihood of renewed investment activity once again tempered by economic uncertainty and geopolitical tensions - from Ukraine and the Middle East to shifting US trade policy. Industry professionals are coming to terms with a prolonged transitional period for real estate following the reversal or moderation of historic tailwinds, including low interest rates and globalisation. All of this is happening while real estate leaders are being forced to redefine the value proposition of the asset class in the face of increasing competition from infrastructure. At the same time, the industry is adapting to long-term structural shifts. ESG remains a priority, though strategies are being refined in response to economic uncertainty. Digitalisation is accelerating, with artificial intelligence increasingly used across real estate activities. And while core markets like London, Paris, Madrid and Berlin continue to attract attention, investors are becoming more selective, focusing on cities and sectors with strong fundamentals and long-term potential.