Key Takeaways
- • Europe's commercial real estate recovery is expected to take longer than previously anticipated, according to the "Emerging Trends in Real Estate Europe 2027" report by PwC and the Urban Land Institute.
- • Geopolitical uncertainty, elevated borrowing costs and regulatory pressures continue to weigh on investor confidence across the region.
- • 45% of surveyed professionals expect business profitability to improve in 2027, down from 50% in the prior year's survey.
- • 42% anticipate improvement in the broader business environment, versus 45% a year earlier.
- • Institutional investors remain selective about deploying capital, even as occupier demand stays resilient and opportunities emerge in certain markets.
Summary
Europe's commercial real estate recovery is expected to take longer than previously anticipated, according to the "Emerging Trends in Real Estate Europe 2027" report published by PwC and the Urban Land Institute. The report attributes the slower path to a combination of geopolitical uncertainty, elevated borrowing costs and regulatory pressures, all of which continue to weigh on investor confidence.
The findings are based on surveys and interviews with 1,498 real estate professionals. Forty-five percent of respondents expect business profitability to improve in 2027, down from 50 percent in the previous year's survey. Sentiment on the broader business environment has also softened, with 42 percent anticipating improvement compared with 45 percent a year earlier.
Investor caution persists despite resilient occupier demand and improving opportunities in certain markets. Institutional investors remain selective about deploying capital, a posture that reflects the gap between operating fundamentals and the cost and regulatory environment facing transactions. The source article is truncated, so the report's further detail on specific sectors and geographies is not reflected here.
The findings are based on surveys and interviews with 1,498 real estate professionals. Forty-five percent of respondents expect business profitability to improve in 2027, down from 50 percent in the previous year's survey. Sentiment on the broader business environment has also softened, with 42 percent anticipating improvement compared with 45 percent a year earlier.
Investor caution persists despite resilient occupier demand and improving opportunities in certain markets. Institutional investors remain selective about deploying capital, a posture that reflects the gap between operating fundamentals and the cost and regulatory environment facing transactions. The source article is truncated, so the report's further detail on specific sectors and geographies is not reflected here.
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