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Schroders Capital Global Real Estate Lens Q1 2026: your go-to guide to global property markets
Global real estate is at an inflection point, with sentiment and liquidity improving in recent months, while the nascent capital value recovery has extended across more markets, supported by robust underlying fundamentals.
Authors
Kieran Farrelly
Global Chief Investment Officer, Real Estate & Head of Real Estate Solutions
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 report, we highlight the ongoing recovery in global real estate markets, evidence both improving investor sentiment and liquidity, and positive value movements in a growing number of markets. This reaffirms us our view that we are in the midst of a compelling sequence of investment vintages to deploy into the asset class.
Key takeaways:
In our latest report, we highlight the ongoing recovery in global real estate markets, evidence both improving investor sentiment and liquidity, and positive value movements in a growing number of markets. This reaffirms us our view that we are in the midst of a compelling sequence of investment vintages to deploy into the asset class.
Key takeaways:
- While concerns over the economic outlook heightened in late 2025, underlying real estate market fundamentals remained robust. Economic growth proved resilient in the US, and Europe showed early signs of an acceleration.
- 2026 is expected to show positive global growth and lower inflation with a resulting reduced likelihood of further interest rate cuts.
- Consensus indicators for European real estate strengthened in Q4 25, particularly around financing conditions and investment liquidity.
- Global real estate transaction volumes also improved in 2025, driven by an increase in US activity, with investment activity in Asia Pacific and Europe tracking closer to 2024 levels.
- Elevated construction costs and financial constraints continue to restrain construction activity. As a result, limited supply pipelines should continue to support rental values, particularly for higher-quality space.
- Capital value growth continued and became more widespread. Divergence across geographies and sectors remains, but capital value improvements are now evident across a broader number of markets.
- Private real estate equity fundraising also recovered last year, with 2025 volumes 26% above 2024, albeit realisation activity remains below historic averages.
- Fund performance across the industry was positive in Q3 2025, the latest figures available, with global core real estate posting a 3.8% annual total return, and non-core funds outperforming, especially in Europe and the US. Long term five and 10 returns remain strongly positive.
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Authors
Kieran Farrelly
Global Chief Investment Officer, Real Estate & Head of Real Estate Solutions
Tematy