Hines sees a potential inflection point for global real estate in 2026 after several years of turbulence and repricing. Titled “Cleared for Takeoff: A New Flight Path for Real Estate,” the firm’s 2026 Global Investment Outlook finds that global real estate appears to be entering a more constructive phase, with opportunities concentrated in living, industrial, retail and select alternatives as markets begin a disciplined recovery.
“After years of turbulence, real estate appears to be finding stability,” said David Steinbach, global CIO at Hines. “The next phase should be a steady climb across pockets of opportunity that reward discipline, hyperlocal insight and strong execution. As clarity returns to pricing and fundamentals, investors who stay measured, intentional and strategic will likely be the ones who succeed.”
Hines’ roster of high-conviction themes starts with the living sector, encompassing multifamily and student housing. Roughly 80% of households in developed economies continue to favor renting over buying, driven by scarcity, affordability pressures and years of underbuilding. Declining construction starts reinforce Hines’ conviction in the sector.
Industrial: Deglobalization and the rise in intra-regional trade is creating new corridors of demand, while new supply has fallen sharply in developed Asia and Europe, supporting long-term rent growth. The warehouse sector also appears to be converging with retail and data centers, creating repositioning opportunities.
Hines says global retail fundamentals have stabilized and strengthened. In the U.S., retail was the top-performing NCREIF sector for 11 consecutive quarters through Q3 2025, with necessity-based and larger-format centers – especially those with a living component – which remained compelling amid historically low new supply.
Office, U.S. Office Credit and Alternatives: Dislocation in the U.S. office sector continued to create opportunities across the capital stack, including equity, particularly as fundamentals begin to turn. Asia saw office demand rise 25% year-over-year, and the U.S. posted its strongest absorption since 2019, signaling early stages of recovery. In alternatives, AI-driven demand for data centers is reshaping global development and land strategies.
“As we enter 2026, the evidence of a market bottom in 2025 appears increasingly clear,” said Joshua Scoville, head of global research at Hines. “Values are already rising in Europe and Asia, and the U.S. appears poised to follow. With moderate demand, limited new supply and the accelerating influence of AI and infrastructure investment, the year ahead could prove to be a game changer for disciplined global investors.”
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