Now in its 23rd edition, the Emerging Trends in Real Estate®: Europe 2026 report is based on a joint survey by PwC and the Urban Land Institute (ULI), providing an in-depth outlook on the real estate market across Europe for 2026 and beyond.
Faced with the reversal or moderation of a number of historic tailwinds, including low interest rates and globalisation, this year’s report shows the real estate industry is adjusting to a prolonged period of transition. At the same time, the industry is being forced to redefine the value of the asset class in face of increasing competition from infrastructure and other investment options.
While politics, war in Ukraine and conflict in the Middle East continue to cast a long shadow over real estate capital markets, deglobalisation is adding to the challenges as governments and regions increasingly prioritise their own interests. The proportion of respondents that now view deglobalisation as a key concern has more than doubled in this year’s survey, from 31% in 2024 to 70% this year.
Changes in US policy have also significantly impacted investment sentiment. The rapidly evolving tariff policy initially interrupted investment momentum in early 2025, but some suggest the unpredictability of the US economy will encourage Europe-focused deals in 2026. Others believe the US still compares more favourably against the limited economic growth and instability in key European markets.