Global real estate investment is picking up, but capital is becoming more selective. Buyers are focusing on assets with strong locations, reliable income and clear long-term demand rather than taking broad exposure across the market.
Global real estate investment reached around US$250 billion in the second quarter of 2026, up 13% from a year earlier. Deal pipelines also strengthened, pointing to higher activity through the rest of the year. Even so, economic and geopolitical uncertainty continues to influence pricing and acquisition decisions.
The result is a market where quality matters more. Buyers are paying closer attention to asset fundamentals, occupier demand and the ability to protect or grow income.
This trend is visible across major regions. North American portfolio transactions reached US$35 billion in the second quarter as large buyers targeted sectors with stronger structural demand. European investment reached €54 billion during the quarter, with residential and living assets representing a significant share of activity. Asia-Pacific investment reached US$46 billion, while industrial and logistics markets continued to attract capital.
European retail is also moving back into focus. Prime shopping centre rents across Europe have increased over the past three years, while several major markets continue to face limited availability of high-quality space. Lisbon and Milan have recorded particularly strong rental growth, supported by low vacancy and restricted development pipelines.
This combination is important because limited new supply can strengthen the position of established shopping centres in good locations. Assets with strong catchments and proven footfall have greater potential to maintain occupancy and support rental income.
Retail demand is also changing. Fashion remains important, but shopping centres are becoming less dependent on traditional clothing retailers. Health and beauty, pharmacies, food and beverage, leisure and services are taking a larger role in the tenant mix.
Demographic change supports this shift. Europe’s population is ageing, creating stronger long-term demand for health, personal care and service-based retail. These categories are expected to grow faster than several traditional retail segments over the coming years.
Physical stores are also becoming more important to retailers’ wider sales strategies. Many locations now support online orders, collections, returns and fulfilment as well as in-store sales. That gives well-located retail property a broader operational role.
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.
