Markets are showing slight signs of recovery as investor interest in Europe begins to renew, particularly in the logistics, residential, and hotel sectors. However, market dynamics differ between Europe and the United States.
While the United States, the United Kingdom, and Spain have resumed investment activity, France and Germany are still experiencing a slower recovery. Two years ago, the market appeared close to stabilization as interest rates declined and asset values dropped.
However, major developments such as geopolitical shifts and decisions related to defense and infrastructure spending have affected the global economy, increasing volatility and slowing growth—especially in Europe.
Despite this, the United Kingdom and Spain have performed better, while the United States has maintained its strength despite the challenges. The reasons behind the slow recovery are linked to the current concentration of investment in value-add strategies, which tend to lower property valuations. This encourages sellers to delay transactions and disrupts market balance.
Core investors—who form the foundation of market stability—have slowed their activity due to higher interest rates and increased exposure to real estate, prompting them to reassess their strategies and portfolio allocations.
The office sector presents a particular challenge for investors, as it represents the largest share of open-ended real estate investments, making it the most affected by the market slowdown. A return to balance will require active participation from core investors to restore confidence and restructure pricing levels in a way that benefits all parties involved.
