Europe’s real estate markets are entering a compelling new phase. Following a deep correction, values are beginning to recover, liquidity is improving and rental growth is strengthening across several key sectors. At the same time, structural forces from urbanisation and demographic change to rapid advances in productivity, and AI are reshaping how cities function. Against this backdrop, 2026 is emerging as a particularly attractive vintage year for value add strategies, with opportunities emerging across both development led and asset management driven approaches.

For investors, today’s markets offer a rare mix of early-cycle recovery and long-term structural demand. Shortages of high-quality stock, strengthening rental growth and rising productivity are driving occupier preference for prime urban assets.  In this environment, well-executed value-add strategies are positioned to capture immediate momentum and durable upside.