Global investor confidence in real estate has strengthened significantly heading into 2026, reaching its highest level since 2019, according to the 2026 Investment Intentions Survey, published today.
The findings signal growing expectations of market recovery, following a prolonged period of correction across global real estate markets, with 38% of investors globally expecting allocations to increase over the next two years, compared with 28% anticipating a decrease.
Overall, the results suggest investors believe markets have moved past the worst of the downturn and are positioning for an early recovery phase.
The survey is published by the European platform for investors in unlisted real estate INREV, the Asian-Pacific organisation for investors in non-listed property funds ANREV, and the global institutional investment real estate body PREA.
Investors position for recovery
Global real estate allocations sit just below target levels on average, 12.4% versus 12.5%, respectively, leaving scope for further capital deployment as confidence improves.
However, clear regional differences continue to shape investor behaviour.
European investors allocations, which were on target last year, are now 20 bps higher than their average target of 13.9%. Asian Pacific and North American investors remain underallocated by 200 basis points (bps) and 40 bps respectively relative to their average respective targets of 10.1% and 10.8%.
Protracted recovery expectations mean that investors across regions are approaching the next phase of the cycle with greater discipline, focusing on active asset management, selective deployment and careful timing of entry points.
In terms of access routes, real estate debt funds have returned as the most popular route into European real estate in 2026, after one year in second place, reflecting demand for income and downside protection.
Joint ventures, club deals and non-listed real estate funds also feature prominently, as investors seek flexible, risk-aware exposure supported by local market expertise.
Interest in non-listed real estate funds also increased compared with last year, from 8% to 17% on a net basis.
Europe continues to attract global capital
Europe continues to dominate global destination preferences for real estate investment, accounting for seven of the top ten preferred global markets.
The region continues to draw strong international interest, with Asian Pacific investors in particular seeking exposure to European strategies as part of their recovery positioning (31%), while notably reducing outbound investments to the US (16%).
Within Europe, the UK and Germany retain their positions as the top two preferred destinations, underpinned by their scale, liquidity and transparency. Spain remains firmly established in third place, supported by strong demand in the living sector.
Denmark has risen to fourth place, reflecting investor preference for politically stable, transparent and sustainability-focused markets, while Ireland enters Europe’s top ten for the first time on record.
Its move into a seventh place is supported by policy measures to strengthen the economy and continued population growth driving occupier demand.
In contrast, France continues to fall in the rankings, now placed sixth, oppose to the steady top 3 until last year, with political uncertainty and subdued economic growth weighing on investor sentiment.
Residential leads
Sector preferences continue to be shaped by long-term structural drivers alongside changing market conditions.
Residential continues to top investor preferences globally and in Europe, supported by demographic trends and persistent housing undersupply.
In Europe, residential is holding the top spot for the third year running. Over a 5-year average, it leads with a strong 80% preference, ahead of industrial/logistics at 71%.
Industrial and logistics continue to attract strong interest, although preference has softened as repricing matures and growth moderates.
Investor interest in offices and development has increased, with both sectors jointly ranking as the third most preferred in Europe with 56%.
Office investment is increasingly selective, with investors focused on prime, high-quality assets, as recovery and value growth expectations remain weak for lower-quality stock, highlighting continued polarisation within the sector.
Sustainability shapes long-term investment
Sustainability continues to play a central role in real estate investment decision-making, with almost 60% of investors now having set a net zero target, driven by long-term risk management considerations and regulatory alignment.
However, most investors continue to favour later timelines, with over two-thirds targeting net zero post-2040, reflecting a pragmatic approach to implementation.
Over half of respondents in Asia Pacific and Europe plan to increase allocations to impact-driven investments, while North American investors show more cautious sentiment, with only 30% targeting such investments.
“After several years of market correction and uncertainty, the 2026 Investment Intentions Survey suggests investors are clearly positioning for a recovery, but the approach feels different,” said Iryna Pylypchuk, INREV’s director of research and market information.
“Investors are tackling the next phase of the cycle with greater discipline, deploying capital selectively across both core and high risk strategies to drive returns,” added Pylypchuk. “Active management of existing portfolio ranks as the second most important issue amongst investors globally as alpha generation is expected to play a pivotal role in driving outperformance.”
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