One of the strongest tailwinds for listed real estate in 2026 is the stabilisation of Europe’s macroeconomic environment. Inflation is aligning with central bank targets, with euro area headline inflation projected at 1.7%, slightly below the ECB’s 2% objective. A return to a normal inflation cycle reduces uncertainty, supports consumer confidence and provides a healthier foundation for corporate planning.

Growth, while moderate, remains constructive. The ECB projects GDP expansion of 1.0–1.2%, supported by resilient labour markets, rising real wages and fiscal stimulus in several of Europe’s largest economies. Non-eurozone markets show stronger momentum: Sweden is forecast to grow by 2.6–3.1%, and Switzerland by 1.5–1.7%, alongside ultra-low inflation. The interest rate easing cycle is nearing its end, with major central banks expected to pause cuts until at least mid-2026. Europe is not booming, but it is stabilising — and for real estate, stability is positive.

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