European real estate investment markets show considerable regional discrepancies in 2026. As highlighted in the latest market report "EMEA Capital Markets Snapshot Q3 2026" by advisory firm Colliers covering 18 European countries, the market recovery is by no means widespread. Whilst several markets are recording significant growth, transaction activity in Germany remains characterised by restraint.
In the first nine months of 2026, the traded volume in Germany reached 21.6 billion euros, representing a decrease of nine percent compared to the same period of the previous year. According to Michael R. Baumann, Head of Capital Markets Germany at Colliers, the primary obstacle is not a lack of liquidity, but rather ongoing complex price discovery between buyers and sellers as well as strict financing conditions. Although international players are showing renewed interest, they attach commitments to narrowly defined risk-return profiles. Colliers anticipates a selective revival for the fourth quarter, before growing pressure on owners and financing banks to act should stimulate activity more broadly in 2027.
Strong transaction growth in Southern Europe and Poland
Selected European neighbouring markets present an entirely different picture, with transaction volumes picking up noticeably over the same period:
- —In Spain, transaction volume grew by 28.2 percent to approximately 16.8 billion euros, largely driven by residential real estate (5.9 billion euros), hotels (3.3 billion euros) and retail space (2.6 billion euros).
- —Poland recorded an increase of 90 percent to more than 4.8 billion euros, with logistics and retail properties in particular driving the gains.
- —In Ireland, investment volume climbed by 34 percent to 2.16 billion euros.
- —Sweden registered a gain of 25 percent to the equivalent of around 13 billion euros.
Luke Dawson, Head of Global & EMEA Capital Markets at Colliers, emphasises that available capital is increasingly being allocated in a targeted manner. Investors are focusing on segments with stable cash flows, robust fundamentals and long-term prospects, with larger portfolios and institutional platforms gaining in importance.
Sought-after asset classes: data centres, residential and logistics
Among the strongest growth drivers are data centres, fuelled by the expansion of digital infrastructure and artificial intelligence. Capacity in the EMEA region stands at around 12.5 gigawatts. Contracted colocation capacity for AI applications across Europe rose to 420 megawatts in the first half of 2026, up from 89 megawatts in the first half of 2025. Because established hubs such as Frankfurt, London, Amsterdam and Dublin face constrained power grid connections and protracted planning processes, alternative locations such as Madrid, Milan, Lisbon and the Nordic countries are moving into focus.
Across Europe, residential properties are benefiting from structural housing shortages and high tenant demand; institutional commitments are focusing on portfolios, purpose-built student accommodation and build-to-rent assets. Industrial and logistics spaces continue to see sustained interest thanks to stable rents, limited speculative construction, and momentum from supply chain adjustments and manufacturing relocations. In the office segment, core-plus and value-add concepts in prime locations are the focus, whilst in retail, food-anchored retail parks and supermarkets are preferred.
