Colliers: Investors recalibrate in EMEA real estate

Despite geopolitical volatility, real estate investment across EMEA showed resilience in Q1 2026, according to Colliers’ EMEA Capital Markets Snapshot.

Damian Harrington

Capital continued to flow into priority markets and sectors, with investors adjusting risk profiles rather than withdrawing.

Sector Trends

Living assets led activity, driven by strong demand for multifamily, build-to-rent, and student housing in the UK, Germany, Spain, and the Nordics. Larger portfolios and off-market deals are returning.

Industrial & logistics remained a core conviction sector, with demand outpacing supply. Limited stock and vendor caution supported values in established hubs while sparking interest in new geographies.

Offices showed early signs of recovery in gateway cities. Appetite is shifting toward high-quality core-plus assets aligned with occupier demand and sustainability.

Retail & hotels saw selective investment, focusing on defensive formats like retail parks and grocery-led assets, and hotels in resilient tourism markets.

Alternatives gained traction, led by data centres (boosted by AI adoption and digital infrastructure needs), alongside healthcare and senior living.

Regional Highlights

Spain stood out with strong living, retail, and hotel investment.

Italy and several Nordic markets recorded steady momentum.

Poland posted its best quarter since 2022, driven by logistics and retail.

UK activity picked up late in the quarter after a slow start.

France remained subdued due to financing constraints and pricing mismatches.

Luke Dawson, head of Global Capital Markets at Colliers, said: “What stands out this quarter is not caution, but commitment. Capital is still very much in the market, and investors are increasingly prepared to act where fundamentals stack up. That willingness to deploy, even in uncertain conditions, is a healthy signal for the next phase of the EMEA real estate cycle.”

Damian Harrington, head of Global Research at Colliers, added: “This is a market that is functioning and adapting rather than stalling. Investors are recalibrating risk, not retreating. Capital remains focused on living, industrial and logistics, data centres and prime assets in gateway cities where there is greater liquidity.”

Outlook

Looking ahead, Colliers expects market conditions across EMEA to remain stable rather than experience rapid growth. While investors will continue to exercise selectivity and pricing discipline, factors such as stabilising values, resilient income streams, and capital still awaiting deployment are anticipated to support gradual progress through 2026.