The last two years have been bruising for the real estate industry. It is not just that interest rates are now higher, but that was the start of the story. Add the geopolitical uncertainty alongside the tech frenzy, and you start getting the picture - capital has been crowded out by shinier neighbours. Data centres (largely funded through alternative channels), infrastructure and private credit have been on the up.
 
At the same time, a number of closed-ended funds that were meant to close around this (and last) year have found themselves out of the money and have put quiet pressure on their investors to roll them out into continuation vehicles. Officially, this is about ‘extracting the remaining value’; unofficially, it is also about managers who, in a difficult year, will not say no to maintaining AUM.

Looking ahead, 2026 feels more constructive. Canadian investors are once again casting an eye towards Europe, while private credit and data centres are starting to feel a little… toppy, creating space for real estate to re-enter the conversation. There is renewed interest in hitherto forgotten sectors such as offices and retail, alongside a residential and student housing market that is becoming more institutional and internationalised by the month. 

The buyer base is also broadening, with family offices and high-net-worth capital stepping in where institutions have paused. Add to this the potential return of Japanese and Korean investors—and perhaps Germans a little later—and the ingredients for a healthier, more balanced market are slowly coming back together.”