February 3, 2026
In this issue, I reflect on what 2025 taught us about adaptation and resilience in global real estate – and explain why we’re cautiously optimistic about the year ahead. I also look at our regional forecasts for Europe, North America, Asia and the Middle East.
Paul Tostevin
Head of Department, Director of World Research at Savills
4,131 followersFollow
Lessons from 2025: adaptability was key to success
From geopolitical uncertainty and shifting capital flows to technological advances and climate risk, 2025 brought significant disruption across the board.
But as I explain in my new blog, global real estate demonstrated its resilience. Occupiers and investors adapted to extreme weather, trade disruption, technological change and shifting flows of people and capital.
AI entered the mainstream, and the associated boom fuelled growth in established tech hubs such as San Francisco. With fiscal loosening arriving later and slower than forecast, investment activity and capital market turnover ended the year lower than our expectations.
As the opening month of 2026 has shown, volatility is here to stay. But if 2025 taught us anything, it’s that adaptability is the hallmark of the most successful real estate.
What’s next for real estate in 2026
Despite ongoing uncertainty, the outlook for the year ahead is set to be brighter, enabling the real estate industry to focus on delivery.
As Oliver Salmon explains, investor optimism is increasing after several years of subdued activity. Institutional capital is returning to the market and occupier demand is resilient. Global real estate investment turnover is set to rise 15% in 2026 to more than $1 trillion.
In our recent webinar, we looked at what to expect in 2026. Listen to the recording to better understand the investment outlook, global real estate trends and occupier dynamics we expect for this year.
What do you think lies ahead for real estate in 2026? Let us know in the comments.
Our regional real estate forecasts
So that’s the global picture, but what’s in store for real estate markets around the world in 2026? We asked our international Research teams to share their regional outlooks:
- Europe. Investment turnover is forecast to rise 18% as pricing visibility improves and institutional capital returns. We expect prime office rental growth to reach 3%, driven by Southern Europe, Central and Eastern Europe and central London.
- North America. We anticipate continued recovery in capital markets, with 15% investment growth forecast. Office tenants will benefit from generous concessions, with a sustained recovery in the office market dependent on easing economic uncertainty and return-to-office trends.
- Asia. Cross-border capital is cautious given geopolitical risks but continues to favour Japan, Australia, South Korea, and to a lesser extent, Singapore. Supply-chain diversification, ‘China plus one’ strategies and e-commerce expansion will support the industrial and logistics sector.
- Middle East. We expect sustained demand for prime residential and offices across the UAE. In Saudi Arabia, the Vision 2030 initiative will remain central but with more focused delivery. And in Egypt, international investment could transform the north coast.
Paul Tostevin
Head of Department, Director of World Research at Savills
4,131 followersFollow
Paul Tostevin heads the Savills World Research team and is one of the lead directors of Impacts, Savills flagship global research programme. His work analyses how economic, environmental, demographic and technological trends influence real estate markets, today and in the years to come.
This newsletter is for general information only and should not be considered professional advice. Savills accepts no liability or responsibility for any direct, indirect or consequential loss arising from the use of, reference to or reliance on, this newsletter or its content.
