The global economy began 2026 in a relatively steady state. However, conflict in the Middle East introduced new headwinds to the global economy. The prospect of economic stagflation is clearly negative for the real estate sector, and this increases the opportunity cost of deploying capital. Global investment of US$230bn in Q1 represented a 5% decline on a sequential basis, signalling a loss of momentum relative to the second half of last year.

Assuming the consensus is right on a swift de‑escalation, the impact on investment activity should be equally short-lived. Pending deals data for Q2 2026 suggest there remains a robust pipeline of transactions, implying activity is being delayed rather than destroyed. This echoes the pattern seen following the ‘Liberation Day’ US tariff shock of April 2025, where first half weakness was replaced by second half strength.

This quarterly report explores these global trends, looking at recent transactional activity, pricing, and investor behaviour in North America, Europe, and Asia Pacific regions. We hope you find these three reports insightful and enjoy reading them.

Read the full Q1 report, or read the individual regional reports: Asia Pacific, Europe and North America.

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