European real estate investor confidence rises for 2026

According to CBRE's European Investor Intentions Survey 2026, which gathered insights from nearly 700 investors, sentiment in European real estate markets is on an upward trend. 

Barcelona - European Investor Intentions Survey 2026 - CBRE

This positive shift is driven by stabilising property prices, lower borrowing costs, and a more dynamic capital market. The survey highlights evolving investor strategies as the market progresses into its recovery phase.
The 2026 survey reveals a notable shift in market preferences across Europe. Investors anticipate big regional differences in total returns and cross-border investment, with several markets gaining traction as confidence grows.
Spain has emerged as the most attractive country for investment, backed by strong economic fundamentals and robust demand across major sectors.
London maintains its position as the top city for international investment, thanks to its market depth, liquidity, and global connections.
Madrid, Warsaw, Barcelona, and Milan are also highly ranked, benefiting from strong tenant demand and improving market conditions.
Southern Europe continues to strengthen, while certain Central and Eastern European (CEE) locations remain attractive due to stable economies and ongoing investor interest.
These findings offer a clear indication of where capital is likely to be concentrated in 2026, highlighting potential early entry points for investors.
A significant majority of investors (89%) expect real estate purchasing activity to either increase or remain stable in 2026. This optimism is fueled by a more stable economic environment, clearer property valuations, and better financing options. Increased capital rotation is expected throughout the year, supporting both new acquisitions and portfolio adjustments.
Most investors plan to maintain or increase their real estate allocations. General Partners (GPs) show a particularly strong intent to deploy capital, supported by higher capital raised for European real estate in 2025. Investors continue to favour core-plus and value-add strategies due to limited supply and attractive pricing. Interest in core assets has also grown incrementally year-on-year, driven by anticipated rental growth in various sectors.
For the second year in a row, the Living sector is the most preferred among investors. Logistics also remains a prime choice, while sentiment towardsthe  Retail and Office sectors has improved compared to the previous year. Structural supply constraints and consistent tenant demand continue to bolster the Living and Logistics sectors. Meanwhile, selective opportunities are starting to appear in Office and Retail as confidence gradually recovers.