Schroders Capital Global Real Estate Lens Q3 2026: your go-to guide to global property markets
Our quarterly market overview highlights that the real estate recovery remains selective, with the Middle East conflict weighing on outlook and sentiment while occupier markets show resilience.
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Our Global Real Estate Lens summarises the key data and trends for prevailing economic and capital market conditions, real estate occupier markets, and private real estate debt markets.
In our latest edition, we assess how global real estate is navigating an economic environment increasingly shaped by the conflict in the Middle East. This has weighed on sentiment and renewed inflationary pressures that have shifted the outlook for interest rates. Despite this, underlying property market fundamentals have been relatively resilient, with constrained supply supporting rental income.
Real estate investment activity continued to recover in the first half of the year, although this in part reflects transactions negotiated prior to the conflict escalating. Capital values were also broadly stable or modestly higher. While significant unevenness remains across regions and sectors, public market pricing provides an encouraging signal for further recovery in private markets in the months ahead.
Key takeaways:
- Easing economic outlook, with softer growth expectations and renewed inflationary pressures shifting the outlook for interest rates.
- Interest rates could remain higher for longer, with near-term increases to central bank rates expected in the US and Eurozone, while the Bank of England could keep rates on hold for longer in our view.
- Real estate occupier fundamentals remain well supported. Particularly as elevated construction and financing costs are constraining new supply, in turn, supporting rental income.
- Global investment activity continued to recover in H1 2026, albeit slowly, led by the US and EMEA, while Asia-Pacific lagged. US data centre investment surged, while senior housing and care homes posted strong growth globally.
- Transaction pricing and capital values have generally further stabilised or modestly grown since the start of the year, but divergence remains significant across markets and sectors.
- Global real estate fund performance continued to recover in Q1 2026, with Core outperforming non-core over shorter time horizons in EMEA and Asia.
- Private real estate fundraising remains subdued, following an improvement in 2025. Meanwhile, distribution activity improved but remains well below historic average levels.
- US debt costs have risen since the start of the year, as higher Treasury yields more than offset a tightening in loan asking spreads.
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