KGAL: 2026 "Year of Change" for real assets

Munich-based real asset specialist KGAL believes 2026 could be a "Year of Change" for real asset markets, driven by a positive turnaround and geopolitical shifts across Europe.

Florian Martin and André Zücker

KGAL is systematically integrating AI and a comprehensive data platform to enhance efficiency and support investment decisions, spanning standard processes through to analysis, research, and risk management. ESG remains central to all of KGAL’s activities.
Despite a gap between buyer and seller price expectations, KGAL secured key real estate acquisitions in 2025, increasingly focusing on social infrastructure properties. Notable examples include the "Güterwerk" office in Nuremberg and the Justice Centre in Erfurt, with further projects in the pipeline.
The residential real estate sector remains a stable pillar of KGAL's portfolios, underpinned by housing scarcity and rising rental demand. The KGAL Core 5 fund expanded its remit with a new-build property in The Hague and aims for a distribution yield of over 4%, even amidst challenging valuations.
KGAL recently secured a major early lease renewal for the Aviva office complex in Munich (60,000 m2). This represents the largest single lease in the state capital in over five years. Additionally, the repositioning of the Karlak office and retail property in Prague has proved successful, with retail rents increasing by almost 30% since its acquisition in 2022.
André Zücker, Co-CEO of KGAL, said: “Europe must take steps to become more attractive and sovereign. There are already examples of more rapid political action, such as the Special Fund for Infrastructure and Climate Neutrality, the new Germany Fund, and the offshore wind investment pact among the North Sea coastal states. Projects worth billions are being launched in Germany and Europe, promising to stimulate the economy.”
Florian Martin, Co-CEO of KGAL, added: “The geopolitical pressure on Europe could also unleash positive forces for the economy and financial markets. One area of focus is the megatrend of infrastructure in all its facets, with government initiatives requiring additional private investment. Private capital must effectively complement and leverage these support packages. As a diversified asset manager across energy infrastructure, mobility/aviation, and infrastructure real estate, we expect significant tailwinds in 2026.”