According to the latest Global Capital Flows Report from Colliers, global real estate investments saw an increase in momentum in the second quarter of 2026. The transaction volume for existing properties at the end of the quarter was 21.2 per cent above the previous year's level. In the first quarter, the increase had been 15.2 per cent. Investment activity has thus reached 96.5 per cent of the five-year average.
This recovery does not encompass all markets and usage types equally. Investors are primarily focusing on segments that show long-term stable demand and sustainable value creation potential. The EMEA region remains the leading target region for cross-border real estate capital, accounting for 57 per cent of activity within the 20 most important investment markets. The investment volume in the EMEA region in the second quarter was 14.8 per cent above the previous year's level and reached 93 per cent of the five-year average.
Germany as a leading investment location
Germany continues to establish itself as one of the most significant investment destinations. In the past twelve months, approximately 14.2 billion US dollars in cross-border real estate capital has been invested in Germany. This corresponds to fourth place in the global ranking. Germany's share of the global cross-border volume is 7.6 per cent, compared to a five-year average of 8.7 per cent. Globally, the USA has replaced the UK as the frontrunner, and Japan has moved up to third place. France and Spain also gained market share.
Michael R. Baumann, Head of Capital Markets Germany at Colliers, stated that Germany remains a central investment location and is among the most important destinations for cross-border capital. He highlighted that the strength of the German market lies in its comprehensive diversification across locations and usage types. At the same time, growth segments such as data centres or student housing are opening up new opportunities for investors.
Development by asset class and investment strategies
In the EMEA region, office properties account for the highest investment volume over a 24-month average, at approximately 59 billion US dollars. Multifamily properties follow with 57 billion US dollars, while industrial and logistics properties reach 49 billion US dollars. Globally, the multifamily asset class leads with a share of 24.2 per cent, followed by industrial and logistics with 22.6 per cent, and office with 21.2 per cent.
- —High-quality value-add office investments are gaining increasing focus in EMEA.
- —Interest is also directed towards data centres and digital infrastructure, living concepts including student housing, as well as industrial and logistics properties.
- —Data centres registered a significant increase: Investment volume in EMEA rose from three billion US dollars in the first quarter to ten billion US dollars in the second quarter.
- —Value Add remains the dominant investment strategy globally with 39 per cent, with opportunistic strategies rising from twelve to 28 per cent by mid-year.
Fundraising priorities are also shifting. Europe's share of globally raised real estate capital increased from 16 to 21 per cent. In total, global fundraising reached 93 billion US dollars in the first half of the year, which represents a 16 per cent decrease compared to the previous year's figure, which was characterised by exceptionally high capital commitments for data centre strategies.
For the second half of the year, Colliers forecasts largely stable key interest rates in the major markets initially. As risk-free interest rates are expected to remain significantly above the levels of 2010 to 2021, Colliers anticipates only a limited compression of yields for commercial properties.
