Global real estate: five key trends for family offices in 2026

Real estate is a vital component of many family office portfolios. Recently, global investor sentiment for the asset class has shifted from caution to a more balanced conviction, supported by stabilising interest rates, clearer pricing signals, and growing cross‑border appetite. Below, Saydam Salaheddin, Global Head of Real Estate Lending at Deutsche Bank Private Bank, shares five defining themes shaping the property landscape in 2026.

 

1. Residential real estate: cross‑border capital on the rise

 

Cross‑border demand for residential real estate (RRE) has surged in recent years, driven by geopolitical uncertainty and tax regime changes affecting internationally mobile wealthy families.

 

Dubai continues to dominate global super‑prime property sales. The emirate once again led the market in 2025, recording 500 transactions above 10 million US dollars throughout the year, according to Knight Frank. In the fourth quarter alone, deal values reached 2.5 billion US dollars.[1] New York came in second place with 326 sales, up from 265 in 2024.

 

Abu Dhabi and Qatar[2],[3] have also enjoyed increasing interest, with families drawn to strong infrastructure, healthcare and schools. In Asia, both Hong Kong and Singapore recorded modest upticks in demand as well.

 

London, meanwhile, has seen a notable decline with 161 super-prime property sales in 2025 – down from 237 the previous year – as tax reforms dampened activity in the market following the post-pandemic boom. Indeed, despite the decrease year-on-year, the number of super-prime sales in the UK capital still sit above annual levels for the last 20 years and are broadly consistent with the ten-year average.

 

Across the Atlantic, outflows from the US persist as affluent families seek diversification elsewhere. Within Europe, lifestyle destinations – including Portugal, Italy, Greece and Spain – continue to attract significant inbound capital,[4] supported by favourable tax frameworks, much improved quality infrastructure and attractive quality‑of‑life and cost-of-living dynamics.

 

Second homes are increasingly evolving into true secondary residences, with families spending far longer periods in them each year as lifestyle flexibility, remote‑working norms and cross-border mobility trends continue to rise.

 

Residential supply shortages intensify

 

Europe’s structural housing shortages remain acute exacerbated by bankruptcies in the construction sector caused by the pandemic and by the non-viability of development projects after the rapid rise in interest rates (i.e. financing, material and transportation costs) which ensued. The UK, Germany, Spain and the Netherlands are especially constrained, with regulatory barriers, labour shortages, and planning delays compounding supply‑demand imbalances.[5]

 

Without innovative solutions, the relentless upward pressure on rents risks becoming unsustainable. Governments across Europe are facing mounting political pressure to accelerate housing delivery, strengthen renters’ rights, and introduce measures on both the demand and supply side to support prospective buyers, as affordability increasingly becomes a barrier to homeownership.

 

Nevertheless, residential real estate continues to attract capital, underpinned by favourable demographic trends and a strong appetite for defensive income.[6]

 

2. Commercial real estate - turning a corner?

After several challenging years, global commercial real estate (CRE) is beginning to stabilise, though recovery continues to vary significantly across markets and sectors.

 

Interest‑rate divergence

The EU and Switzerland have cut rates more aggressively, supporting early‑cycle recovery. At the same time, higher bond yields in the US and UK continue to compete with property returns.

 

Offices and retail, a “tale of two cities”

Premium, ESG-aligned office stock is commanding record rents as employers prioritise high quality environments to attract talent. Lower quality offices continue to suffer elevated vacancy and are increasingly subject to ‘brown-to-green’ refurbishment or conversion to the living categories. Retail exhibits a similar bifurcation: we are seeing prime, experience-led locations outperforming, while secondary assets in lesser locations struggle. 

 

Targeted sectors

Knight Frank’s Active Capital Survey shows office, residential and industrial/logistics as the top three targeted global sectors for 2026[7], with offices leading planned allocations for the year. Indeed, 144 billion US dollars in global CRE investment is expected for 2026.

 

3. Logistics, hospitality and next generation infrastructure continue to expand

 

Logistics

E‑commerce growth is sustaining strong demand for both last‑mile fulfilment hubs and larger distribution centres. Dark kitchens, supermarket logistics platforms, and same‑day delivery infrastructure remain essential components of modern supply chains.

 

Hospitality

The hospitality sector’s post‑COVID experience economy remains vibrant. Specialist hotel concepts – from boutique party hotels to no‑service formats – continue to scale as consumer expectations evolve. Hotels are now one of the Private Bank’s largest lending segments, supported by rising wealth in emerging markets and increased global travel.

 

Data centres and energy infrastructure

AI and digitalisation are compounding demand for energy‑intensive data centres and related power‑generation and storage assets – now recognised as major long‑term global trends. Amazon‑style logistics hubs share similar energy and land requirements.

 

Defence‑related real estate

NATO countries’ rising defence spending has begun to drive demand for factories, logistics facilities, housing, and related ancillary needs. Military‑related RE investment, while small in the overall scheme, will increasingly have to find its place within regional development plans. 

 

4. ESG remains a vital topic, especially in Europe

 

While ESG conversations have temporarily become more muted, long‑term sustainability commitments in real estate appear to remain intact – especially across Europe, where regulatory frameworks continue to strengthen. Younger generations, in particular, maintain strong ESG expectations.

 

While modern offices tend generally to be high rise modern structures that can achieve high standards easily, many European countries have significant amounts of historic or listed assets, particularly in old towns and city centres. Some asset categories, such as hotels, will require proportionate regulatory treatment to balance preservation with energy‑efficiency goals.

 

5. The return of private equity and capital deployment dynamics

 

After retreating during the post‑pandemic downturn, private equity has gradually been re‑entering real estate. Many funds that bought aggressively at low rates are still unwilling to crystallise losses, delaying exits until valuations recover.

 

However, major players – including Blackstone, Brookfield and Ares – have already been raising significant capital and pursuing opportunities in logistics, healthcare and public‑to‑private transactions at discounted valuations. As financing conditions improve, investors are increasingly targeting opportunities trading at meaningful discounts to net asset value.

 

Generational thinking – a strategic advantage in volatile markets

 

Despite ongoing geopolitical uncertainty, the fundamentals for both RRE and CRE are expected to remain strong over the next five years. Family offices adopting a generational mindset may be best positioned to benefit – viewing periods of dislocation as opportunities to acquire high‑quality assets at more attractive valuations.