European real estate investment activity is showing early signs of improvement in 2026, with the first quarter expected to deliver a modest increase in transaction volumes compared with the same period last year. Forecasts suggest that around €52 billion of real estate deals will be completed across the region in the opening three months of the year, representing a 6% year on year rise.
The projected increase follows a prolonged period of reduced activity across European property markets as higher interest rates, widening yield expectations and valuation adjustments slowed transaction momentum. While the anticipated rise in volumes remains moderate in absolute terms, the improvement is notable because the first quarter is typically one of the least active periods of the year for investment transactions.
Pricing expectations between buyers and sellers have been adjusting through 2024 and 2025, and the resulting clarity around asset values is beginning to support renewed deal flow. As markets move further through the repricing phase, the conditions for capital deployment are becoming more predictable.
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.
