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After a period of rigorous adjustment, the European commercial real estate (CRE) market is turning a corner. According to Cushman & Wakefield’s ‘European Outlook 2026’ report, the narrative has shifted meaningfully. With interest rates stabilizing and capital flowing once again, investor sentiment is pivoting toward conviction.
As Kevin Thorpe, Chief Economist at Cushman & Wakefield, aptly puts it: "If 2025 was a test of resilience, 2026 has real potential to reward it."
Prime Offices: The Flight to Quality Tightens
The "office is dead" narrative has been replaced by a fierce competition for high-quality, well-connected space in Central Business Districts (CBDs).
Digitalization and shifting supply chains continue to make these the most competitive asset classes in EMEA.
Both residential and hospitality sectors are benefiting from a fundamental lack of supply and a surge in international mobility.
The 2026 outlook confirms what we have been seeing on the ground: the market has digested the shocks of the previous years and is now hungry for growth. The "Caution" of 2025 has provided a floor, and the "Conviction" of 2026 is providing the ceiling.
In real estate, timing is often as important as location. With supply pipelines at decade lows in the office and residential sectors, the next 24 months represent a classic "landlord’s market" in prime European hubs. For investors, the move is no longer about waiting for the bottom. It’s about positioning for recovery. Whether it's a luxury hotel in Milan or a prime office in London, the window to capture yield compression is opening now.