European commercial real estate entered 2026 on relatively stable footing, but rising geopolitical uncertainty and tighter financing conditions are making investors increasingly selective. This is one of the key findings of Cushman & Wakefield’s newly released European Investment Atlas Q1 2026.
According to the report, the European market remains in a “stabilization phase,” with around 56% of markets across Europe still considered underpriced, suggesting continued investment opportunities despite a more challenging macroeconomic environment.
For the retail real estate sector, one finding stands out in particular: retail and logistics currently occupy what Cushman & Wakefield describes as the market’s investment “sweet spot.” While office investments remain highly selective and residential continues to attract institutional capital, retail assets are benefiting from improving occupier fundamentals and continued rental growth in prime locations.
The report notes that the broad recovery seen in 2025 is gradually shifting toward a more selective market environment, where asset quality, income resilience, and operational performance are becoming increasingly decisive.
According to Cushman & Wakefield, European real estate continues to offer attractive opportunities — but investors will need greater discipline in identifying the right assets as markets move closer to fair value.
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