Global real estate investor confidence reaches highest level since 2019, survey shows
According to the latest survey from INREV, ANREV and PREA, 8% of investors globally expect to increase their real estate allocations over the next two years.
Global investor confidence in real estate has strengthened heading into 2026, reaching its highest level since 2019, according to the latest Investment Intentions Survey published by INREV, ANREV and PREA.
The findings pointed to growing expectations of market recovery following a prolonged period of correction across global real estate markets.
The survey found that 38% of investors globally expect to increase their real estate allocations over the next two years, compared with 28% who anticipate a decrease.
Overall, investors believed markets have moved beyond the worst of the downturn and are positioning portfolios for an early phase of recovery.
Average global real estate allocations were just below target levels, sitting at 12.4% against an average target of 12.5%, leaving room for further capital deployment as confidence improves.
Regional differences remained pronounced.
European investors were slightly over-allocated, at 0.20% above their average target of 13.9%, while Asia Pacific and North American investors remained under-allocated by 2% and 0.40% respectively.
This resulted in a disciplined approach across regions, with investors focusing on selective deployment, active asset management and careful timing of entry points.
In terms of access routes, real estate debt funds returned as the most popular way into European real estate in 2026, reflecting continued demand for income and downside protection.
Joint ventures, club deals and non-listed real estate funds also featured strongly, as investors seek flexible exposure supported by local expertise.
Interest in non-listed real estate funds increased notably compared with last year.
Europe continued to dominate global destination preferences, accounting for seven of the top 10 preferred markets worldwide.
The region continues to attract sustained international capital, particularly from Asia Pacific investors, while outbound investment into the US softened.
Within Europe, the UK and Germany remained the top two preferred destinations, supported by their scale, liquidity and transparency.
Spain held third place, driven by strong demand in the living sector, while Denmark rose to fourth, reflecting investor preference for politically stable and sustainability-focused markets.
Ireland entered the European top 10 for the first time, while France slipped in the rankings amid political uncertainty and weaker growth expectations.
Residential real estate continued to lead sector preferences globally and across Europe, underpinned by demographic trends and persistent undersupply of housing.
Industrial and logistics assets remained attractive, although investor preference has moderated as repricing has progressed.
Interest in offices and development increased, with investors focusing selectively on high-quality, prime office stock, reflecting ongoing polarisation within the sector.
Sustainability remained a central consideration in long-term investment strategies, with almost 60% of investors now having set a net zero target, largely driven by risk management and regulatory alignment.
However, most investors were targeting net zero beyond 2040, reflecting a pragmatic approach to implementation.
More than half of respondents in Europe and Asia Pacific planned to increase allocations to impact-driven investments, while sentiment in North America remained more cautious.
Iryna Pylypchuk, director of research and market information at INREV, said: “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.
“Investors are tackling the next phase of the cycle with greater discipline, deploying capital selectively across both core and higher-risk strategies to drive returns.
“Europe continues to play a central role on the global stage, while long-term themes such as sustainability and asset resilience are increasingly shaping how and where capital is deployed.”
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