European real estate investment entered Q2 2026 with improving momentum, but market conditions became more fragmented as macroeconomic and geopolitical risks reasserted themselves. Investors have not withdrawn from the asset class, but they are concentrating on assets that combine secure income, transparent pricing and credible long-term demand.
The recovery is progressing in stages, led by conviction rather than broad-based risk appetite. Fundamentally, Europe remains on investors’ radar, but the threshold for deployment has risen. Capital is most likely to target markets where repricing has created a clearer entry point and where long-term demand is supported by structural growth, constrained supply and durable income.
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