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EW’s 2026 European Annual Outlook shows a rebound in the continent’s property market, with liquidity returning and prime yields tightening. In its best‑case view, average annual returns for prime real estate from 2026‑2030 across 20 countries will hit 8.4 %. GDP growth remains modest at 1.7 % per year, unchanged from the March 2025 forecast. Hans Vrensen, AEW’s Europe research chief, notes that while prime yields are expected to narrow by about 30 bps over five years, bond yields may widen amid macro‑economic pressures. Global tariffs are now seen as less damaging, though challenges persist.
