Emerging Trends in Real Estate® Europe 2026

Access the full report

Geopolitics continues to play a significant role in influencing the real estate sector as demonstrated by the political nature of the top 3 issues causing concern to respondents of our survey.

Like last year, the conflicts in the Ukraine and the Middle East continue to cast a long shadow over the real estate markets. Added to this uncertainty is deglobalisation, which is being regarded as a much more serious issue than in the previous survey.

The evolving tariff policy situation in the US has also had an impact on the real estate sector, interrupting investment momentum in early 2025. While the situation still looks unclear, some interviewees suggested that this could encourage more Europe-focused deals in 2026 as investors look to avoid the unpredictability of the US markets. This is in contrast to others, mostly US-based global interviewees, who believe that the US compares favourably with the limited economic growth in key European markets. US tariffs are also seen to be an inflationary risk, which is expected to delay further rate cuts and economic stability across Europe. 

As external factors, such as interest rates and geopolitics, are unlikely to improve the outlook for the real estate sector in the short-term, industry leaders are increasingly becoming pragmatic, acknowledging that they need to work within the market as it is if they want to remain in business. 

This is most visible in the importance given to the criteria used when selecting new real estate opportunities. Country selection is more prominent than it was just a few years ago, with investment managers focusing on core markets with a strong rule of law, democratic institutions, solid economic growth prospects and high liquidity. Beyond the country level, industry leaders are looking for cities and regions that combine liquidity with the strongest prospects. 

Furthermore, while the industry is still interested in geographical and sector diversification, they are also taking a long-term approach and placing greater emphasis on secular trends, such as demographics, digitalisation and decarbonisation.

This year’s annual survey of European real estate sector leaders’ expectations, by the Urban Land Institute (ULI) and PwC, captures the views of sector leaders from across Europe, covering current influences and the trends shaping the industry.

The Urban Land Institute is a global, member-driven organisation comprising more than 48,000 real estate and urban development professionals dedicated to advancing the Institute’s mission of shaping the future of the built environment for transformative impact in communities worldwide.

ULI’s interdisciplinary membership represents all aspects of the industry, including developers, property owners, investors, architects, urban planners, public officials, real estate brokers, appraisers, attorneys, engineers, financiers and academics. Established in 1936, the Institute has a presence in the Americas, Europe and Asia Pacific regions, with members in 80 countries.

ULI has been active in Europe since the early 1990s and today we have over 5,500 members and 15 National Council country networks.

The extraordinary impact that ULI makes on land use decisionmaking is based on its members sharing expertise on a varietyof factors affecting the built environment, including urbanisation, demographic and population changes, new economic drivers, technology advancements and environmental concerns. Drawing on the work of its members, the Institute recognises and shares best practices in urban design and development for the benefit of communities around the globe.