Residential overtakes offices as new investment order emerges across EMEA

Residential has overtaken offices as the largest recipient of real estate investment across EMEA, while record allocations to data centres and senior living highlight a decisive shift towards operationally intensive sectors and platform‑led strategies, according to Colliers’ EMEA Capital Markets Snapshot for Q2 2026.

Luke Dawson, Colliers

Colliers reports that stabilising values, resilient rents and strengthening transaction pipelines are supporting a gradual recovery, although investors remain highly selective. Capital is increasingly targeting sectors where value can be created through operational expertise, scale and long‑term demand drivers, with larger portfolio deals, joint ventures and platform transactions becoming more prominent.

Luke Dawson, Head of Global & EMEA Capital Markets at Colliers, said the market is “defined by where investors can create value operationally rather than relying on financial engineering,” noting that residential platforms, digital infrastructure and specialist operating sectors offer scalable growth and resilient income.

Office sentiment improved in Q2, with demand focused on core‑plus assets offering refurbishment and leasing upside. Prime offices continue to benefit from constrained supply and rental growth, while secondary stock remains difficult to finance and transact.

Industrial and logistics remains supported by resilient rental growth and constrained supply, with investors increasingly targeting larger portfolio and corporate transactions. Demand linked to supply‑chain resilience, defence and advanced manufacturing remains strong, although elevated construction costs and limited scalable opportunities continue to weigh on volumes.

Retail investment is concentrated on defensive, income‑led formats, particularly retail parks and grocery‑anchored assets. Hotels remain one of the region’s strongest performers, supported by sustained leisure demand and robust operating metrics.

Damian Harrington, Head of Research, Global Capital Markets & EMEA at Colliers, said investors are reallocating capital towards sectors supported by demographic, technological and operational drivers. Data centres continue to dominate alternatives, with power availability now a greater constraint than land supply in key markets. Senior living investment has reached historic highs, reflecting growing institutional demand for needs‑based, inflation‑linked income.

Colliers expects a gradual improvement rather than broad acceleration in H2 2026, with stabilising values, resilient fundamentals and a stronger pipeline supporting increased activity, and platform and structured transactions accounting for a growing share of investment.