Commercial real estate is entering a new stage in 2026 as investors return to the market with greater clarity on values, funding costs and sector resilience. After two years of repricing and constrained activity, transaction volumes are beginning to rise, supported by stabilising capital markets and a shift in investor focus towards income-generating assets.
European markets are leading the adjustment. Liquidity has improved, balance sheets have strengthened and institutional capital is re-engaging. Clearer price discovery and stronger rental fundamentals are enabling investors to underwrite deals with more confidence. While interest rates remain elevated, the environment is now more predictable, which reduces risk around financing and valuations.
Logistics, residential and retail assets with strong tenant demand are performing well, offering secure cash flows and rental growth. These sectors continue to attract capital, especially in locations with supply constraints. The office market remains mixed, with modern, energy-efficient buildings maintaining leasing activity while older, less adaptable space continues to face structural pressure.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.
