They Know Where They’re Going – Nov. 24, 2025
Colliers’ 2026 Global Investor Outlook reports that institutions are re-entering global real estate markets with confidence
Colliers has just issued its 2026 Global Investor Outlook, which finds that investors are re-entering global real estate markets with confidence and pursuing diversification across regions and sectors. Based on Colliers’ proprietary research and a global survey of institutional investors, the report finds that market fundamentals are improving, liquidity is returning and pricing expectations are normalizing. Despite persistent cost pressures and geopolitical risks, there’s a growing sense of optimism for the coming year.
“Investors are changing gears,” said Luke Dawson, head of global and EMEA capital markets at Colliers. “After a challenging period, capital is moving decisively toward stability and opportunity. Hands-on, controlled strategies and partnerships are driving value as the market regains its footing.”
Forty-nine percent of the investors Colliers surveyed favor direct investments and separate accounts, with platform joint ventures and M&A gaining traction. Private equity and secondary funds are increasingly investing in both property-owning entities and operating businesses.
The report cites a mismatch between investor appetite and fund orientation. While 37% of investors currently prefer core and core-plus strategies, just 9% of real estate funds being raised target these areas. “Early signs of this shift are already evident in direct transactions,” the report states.
“This imbalance is prompting investors to rethink how they engage with the market, choosing structures that offer faster execution, flexibility and scale,” said Damian Harrington, director, head of research, global capital markets and EMEA at Colliers. “Platform deals give investors a seat at the table and greater control. It’s a tactical shift that reflects a more engaged, operational approach to capital deployment.”
Global allocations are also evolving, with multi-regional strategies accounting for nearly 30% of global fundraising. North America accounted for 40% of fundraising in 2025 to date, down from 50% in 2024, while European fundraising grew 50% and Asia Pacific jumped 130% year-over-year, an increase that reflects growing interest in markets such as Japan, Australia and India.
Data centers accounted for 31% of global real estate funds raised in the first nine months of 2025, making it the second-most popular asset type after multifamily, displacing industrial. “While the U.S. remains the largest and most mature market, investor interest is global, driven by rapid AI growth and corporate investment from large tech firms and infrastructure funds,” according to the report.
Offices, which have been overshadowed since the pandemic, are rebounding globally, although at present investor interest in this sector is strongest in APAC and Europe. Alternatives such as student housing, self-storage and healthcare are also gaining traction, driven by demographic trends and supply-demand imbalances.
“Investor preferences are quickly evolving,” said Dawson. “With the deep integration of digital infrastructure in our economy, renewed interest in offices following expanded return-to-office mandates and momentum across demographic-driven sectors, it’s clear that capital is chasing both innovation and resilience.”
As investors focus on value creation, many are looking to reposition existing assets. High construction and operating costs are accelerating adaptive reuse, particularly in supply-constrained markets. Office buildings are being upgraded to meet sustainability standards and evolving tenant demand, with APAC and Europe leading this trend.
“The year ahead will reward investors who can combine speed with strategy,” Dawson concluded. “We’re seeing a redefinition of how capital is deployed, with tactical execution, platform control and regional rebalancing driving flows. The focus is shifting to value creation, operational influence and long-term resilience across sectors and markets.”