CBRE – 2026 European Real Estate Market Outlook, Jan 2026

The report provides an outlook on the European real estate market for the year 2026, covering various sectors including economy, capital markets, living, purpose-built student accommodation (PBSA), logistics, offices, retail, hotels, data centres, and sustainability.

Europe’s economy is expected to face slower growth due to global weakness, trade policy challenges, a strong Euro, and competitive pressures. Real estate capital markets will see positive sentiment and gradual recovery driven by income-focused strategies and strong lending appetite. The Living sector will continue to experience a structural supply-demand imbalance, sustaining rent growth despite increased development in select markets. Demand for PBSA will remain strong due to Europe’s appeal to international students. The logistics sector will see moderate improvement in take-up, with net absorption recovery expected next year. The investment market will improve gradually with better financing conditions. Office demand will benefit from employment growth and rising office utilization, while data centres demand is rapidly growing, driven by the AI boom.