Global real estate investment activity reached around US$250bn in Q2, up 13% year-on-year, says Savills, with a stronger pipeline supporting expectations of further growth in 2026.
The international real estate advisor says that pending deals data (transactions under contract but not yet completed) points to an active pipeline entering the second half of the year, and a potential 16% increase in global investment activity in the full year 2026, however it does warn of investors being increasingly selective.
Savills says that sequential, seasonally adjusted investment growth fell into negative territory in early 2026, reflecting a deterioration in sentiment linked to the conflict in Iran, but the disruption has been relatively modest given the scale of the potential economic spillovers and broader trends remain positive. Nonetheless, it says that global macroeconomic conditions do not support indiscriminate risk-taking, or a broad-based acceleration in leasing activity.
Rasheed Hassan, Managing Director, Global Capital Markets, at Savills, comments: “Globally, Q2 surprised on the upside. Investors are trying to find ways to bid through the today and underwrite a better tomorrow, and we are quietly seeing the effects of this in the turnover numbers. While conditions remain uncertain, the foundations for the next phase of the cycle are being laid with the most experienced and well-capitalised investors remaining in the market, which should place us on a healthy footing in the years ahead. The key takeaway is that this is not a market devoid of opportunity, but one that places a greater premium on selectivity, conviction and a clear understanding of fundamentals.”
According to Savills, in North America, portfolio investment reached US$35bn in Q2, up 60% year-on-year, compared with 10% growth for individual asset sales. This trend, which has been building since late 2025, reflects both the scale of institutional capital targeting US real estate, and investors’ growing preference for platform acquisitions to gain exposure to high-growth sectors supported by long-term structural themes and increasing investor familiarity, such as senior housing, self-storage and data centres.
European real estate investment entered Q2 2026 with improving momentum, with transaction activity reaching €54bn in Q2 2026, up 7.7% year-on-year, but market conditions became more fragmented as macroeconomic and geopolitical risks re-emerged. Asset allocation trends continued to favour sectors with resilient occupational and rental growth fundamentals. Living sectors, including multifamily, purpose-built student accommodation, care homes and senior living, accounted for 29% of total European investment during H1 2026.
Total investment turnover in APAC reached US$46bn in Q2 2026, up 18% year-on-year, bringing first half turnover growth to 25%. There were a growing number of development deals linked to the living sectors, as well as increased momentum in the PBSA subsector across the region as rising international student numbers support the buildout of institutional platforms. Investment activity across the industrial and logistics sectors also continued along a recovery path, with Q2 2026 investment rising 17% year-on-year, and first half turnover up 28%.