Global real estate investment set for significant rebound

Savills World Research predicts a significant rebound in global real estate investment, forecasting it to surpass $1 tn (€920 bn) in 2026 – a 15% increase from 2025 and the first time this threshold has been crossed since 2022.

Office buildings - Savills

The report highlights that EMEA is expected to experience the strongest relative investment growth in 2026, increasing by 22% to $300 bn (€276 bn). However, the Americas will maintain its position as the largest real estate investment market, with turnover projected to reach $570 bn (€524 bn) (up 15%), largely propelled by the US market reaching $530 bn (€488 bn).
The office sector is anticipated to account for approximately one-quarter of this investment, with Savills suggesting its share of global investment will continue to grow in 2026. Despite ongoing economic and fiscal challenges identified as key influences on all property sectors and markets, Savills observes a resurgence in investor optimism. This is attributed to the return of institutional capital, sustained occupier demand, and the release of pent-up activity following a period of subdued performance.
A strong majority (89%) of Savills researchers worldwide expect prime office rents to rise in their regions in 2026, with two-thirds projecting growth of 2% or more, as organizations continue to seek high-quality office spaces. Consequently, 82% of researchers anticipate capital value growth for prime/Grade A offices next year. Investor demand is also expected to remain robust in the residential and industrial & logistics sectors. The retail sector also presents opportunities, with two-thirds of researchers forecasting rental growth in 2026 and another 26% expecting stable rents, though the outlook varies by sub-sector and region.
Technology, particularly rapid AI adoption, has climbed to become the second most important market driver, up two places from last year. Savills notes that AI's impact on global workforces will influence office demand and reshape occupational strategies across all asset classes, even offering a hedge in living sectors. Furthermore, AI will create opportunities in data centres and through the transformative potential of PropTech.
Rasheed Hassan, head of Savills Global Cross Border Investment team, says: “2025 marked a turning point in real estate capital markets with investment turnover in the first three quarters up 10% compared with the same period in 2024. More importantly, the underlying data reinforces the narrative of stability and recovery; capital values have bottomed out, average deal sizes are increasing, and debt is once again accretive to returns. We expect these positive trends to strengthen further in 2026.”
Paul Tostevin, head of Savills World Research, comments: “2026 offers renewed optimism, and overall we anticipate growth in both investment and occupier activity across most sectors in the majority of regions next year, although there will still be plenty of forces to navigate. The economy remains front and centre, with falling interest rates and available capital converging with resilient occupier demand, supporting a recovery in investment activity. Technological change, driven by rising AI adoption, is a rapidly rising market driver, but investors and occupiers should not overlook demographics and behavioural change. Real estate ultimately exists to serve people – where they live, work, shop and spend leisure time. As these behaviours evolve and demographic profiles shift, operational expertise is becoming a key differentiator.”