Stabilising values, resilient rents and improving transaction pipelines are supporting a gradual market recovery, although investors remain highly selective.
The market is increasingly favouring opportunities where value can be created through operational expertise and scale. Larger portfolio acquisitions, joint ventures and platform transactions are becoming more prominent as investors target sectors supported by long-term demand and resilient income. Residential investment has overtaken offices for the first time, while data centre investment has reached historic highs.
The market is becoming increasingly defined by where investors can create value operationally rather than relying on financial engineering. Residential platforms, digital infrastructure and specialist operating sectors are attracting capital because they offer long-term demand drivers, scalable growth opportunities and the potential for resilient income performance. Investors continue to deploy capital selectively, but confidence is improving where strong fundamentals support future performance.
Luke Dawson, head of global & EMEA capital markets at Colliers
Office sentiment improved during the second quarter, with demand concentrated on core-plus assets offering value-add potential through refurbishment, leasing and repositioning. Prime assets continue to benefit from constrained supply and rental growth, while secondary stock remains harder to finance and transact.
Industrial and logistics continues to benefit from resilient rental growth and constrained supply, with investors increasingly targeting larger portfolio and corporate transactions. Demand linked to supply-chain resilience, defence and advanced manufacturing remains supportive, although a lack of scalable opportunities and elevated construction costs continue to constrain volumes.
Retail investment remains focused on defensive, income-led formats, with retail parks and grocery-backed assets attracting the strongest liquidity. Hotels continue to rank among the region's strongest-performing sectors, supported by sustained leisure demand, robust operating performance and growing institutional allocations.
Damian Harrington, head of research, global capital markets & EMEA at Colliers, said:
"
The most significant market signal is not simply improving investment volumes but changing allocation patterns. Investors are increasingly directing capital towards sectors supported by demographic, technological and operational drivers. Residential assets, data centres and senior living are gaining market share because they align with long-term structural demand trends, while constrained supply continues to support rental performance across several traditional sectors. The result is a market that is becoming more specialised, more platform-driven and increasingly focused on operational expertise.
Damian Harrington, head of research, global capital markets & EMEA at Colliers
The living sector remains one of the region's most sought-after asset classes, with demand focused on build-to-rent, co-living and larger residential portfolios. Student accommodation is showing renewed resilience, while international capital remains active despite ongoing valuation challenges.
Within alternatives, data centres continue to dominate investment activity, although power availability is emerging as a greater constraint than land supply in markets including London, Frankfurt, Amsterdam and Dublin. Senior living investment has also reached historic highs, reflecting growing institutional demand for needs-based, inflation-linked income. Healthcare is attracting increasing investor attention, supported by recent transactional activity and long-term demographic trends.
Looking ahead, Colliers expects gradual improvement rather than broad market acceleration in the second half of 2026. Stabilising values, resilient occupational fundamentals and a stronger transaction pipeline are expected to support increased activity, while larger platform and structured transactions account for a growing share of investment.
Who will win and who will lose with changes to the land market
Who will win and who will lose with changes to the land market
Walter Herz
The biggest change to the land market in years is on the horizon. The spatial planning reform will mean that plots previously considered attractive may lose value, while land with ...
Sales up, supply down
Sales up, supply down
JLL Polska
In the first quarter of 2026, the Polish housing market recorded a significant increase in sales. A total of 12,900 apartments were sold across the country's seven largest cities ( ...
Rent isn't everything. The real costs of leasing warehouse space
Rent isn't everything. The real costs of leasing warehouse space
Newmark Polska
Choosing a new warehouse takes much more than simply comparing rental rates across a few or even a dozen centres. With rising energy costs and varying technical standards, the actu ...