Global real estate investment volume recorded 13 per cent growth in the second quarter of 2026 compared to the same period last year, reaching approximately US$250 billion. This development is underpinned by a strengthened deal pipeline, indicating sustained growth for the current year. Data on transactions already under contract but not yet completed signals an active second half of the year, which could lead to a potential 16 per cent increase in worldwide investment activity for the whole of 2026.
Despite these positive indicators, investors are acting increasingly selectively. This is evidenced by a seasonally adjusted, sequential decline in investment activity at the start of 2026. This cooling of sentiment is viewed in the context of the Iran conflict. The disruptions remained moderate given the potential scale of economic impact, with overall market trends remaining positive. However, the macroeconomic conditions do not allow for undifferentiated risk-taking or a broad acceleration in leasing activity.
Regional Developments and Sector Trends
Rasheed Hassan, Managing Director, Global Capital Markets at Savills, commented that the second quarter had delivered a positive surprise globally. Investors were seeking ways to invest despite uncertainty and anticipating a brighter future. This was already cautiously reflected in transaction figures. Despite an uncertain market environment, the foundations for the next cycle phase were being laid. Well-capitalised and experienced investors remained active, which should provide a solid basis for the coming years. He emphasised that this was not a market without opportunities, but one where selectivity, conviction, and a deep understanding of fundamentals would be more greatly rewarded.
In North America, portfolio investments reached US$35 billion in the second quarter, a 60 per cent year-on-year increase. Single-asset sales grew by 10 per cent over the same period. This trend, which began to manifest at the end of 2025, reflects the volume of institutional capital targeting US real estate, as well as investors' growing preference for platform acquisitions. Such acquisitions offer access to high-growth sectors like healthcare real estate, self-storage, and data centres, which benefit from long-term structural developments and with which investors are increasingly familiar.
Europe started the second quarter of 2026 with increased momentum. Transaction volume reached EUR 54 billion, a 7.7 per cent increase compared to the previous year. At the same time, fragmented market conditions emerged due to a renewed focus on macroeconomic and geopolitical risks. Allocation trends continued to favour sectors with robust fundamentals regarding user and rental growth. Residential-related segments, including multifamily housing, student accommodation, and care homes for the elderly, accounted for 29 per cent of the total European investment volume in the first half of 2026.
In the APAC region, investment volume reached US$46 billion in the second quarter of 2026, an 18 per cent year-on-year increase, boosting first-half growth to 25 per cent. In this region, there was an increase in transactions for residential-related development projects. The PBSA (Purpose-Built Student Accommodation) segment gained momentum, supported by rising international student numbers and the expansion of institutional platforms. Investment activity in the industrial and logistics markets continued its recovery, with a volume increase of 17 per cent in the second quarter and 28 per cent in the first half compared to previous year's figures.
