{"id":5519,"date":"2026-05-27T09:00:27","date_gmt":"2026-05-27T09:00:27","guid":{"rendered":"https:\/\/ceo.com.pl\/en\/?p=5519"},"modified":"2026-05-27T09:00:27","modified_gmt":"2026-05-27T09:00:27","slug":"global-commercial-real-estate-market-set-for-recovery-in-2026","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/","title":{"rendered":"Global Commercial Real Estate Market Set for Recovery in 2026"},"content":{"rendered":"<p>Knight Frank has published the 20th edition of its \u201cThe Wealth Report\u201d. According to this year\u2019s report, 2026 may bring a clear recovery in the global commercial real estate market, supported by the return of institutional capital estimated at USD 144 billion.<\/p>\n<p>This shift is taking place at a time when private capital continues to dominate. Private investors, including ultra-high-net-worth individuals and family offices, have remained the largest buyers of commercial real estate globally for the fourth consecutive year. In 2025, they invested USD 464 billion, compared with USD 347 billion invested by institutional capital.<\/p>\n<p>Knight Frank\u2019s data shows that investment decisions are increasingly based on market fundamentals rather than current headlines or short-term sentiment. Despite ongoing geopolitical tensions and regulatory uncertainty, only 15% of survey respondents, representing USD 1.4 trillion in assets, identify domestic politics as a key factor influencing investment decisions. Just 5% cite regulation and taxation.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/#The_advantage_of_private_capital_is_becoming_increasingly_visible\" >The advantage of private capital is becoming increasingly visible<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/#Office_market_recovery_driven_by_occupier_demand\" >Office market recovery driven by occupier demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/#Retail_recovery_highlights_undervalued_sectors\" >Retail recovery highlights undervalued sectors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/#Large_transactions_in_Europe_signal_the_return_of_investor_confidence\" >Large transactions in Europe signal the return of investor confidence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/#Capital_flows_rebound_in_the_Asia-Pacific_region\" >Capital flows rebound in the Asia-Pacific region<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/#India_offers_a_more_stable_entry_point_for_global_capital\" >India offers a more stable entry point for global capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ceo.com.pl\/en\/global-commercial-real-estate-market-set-for-recovery-in-2026\/#Market_fundamentals_are_more_important_than_short-term_sentiment\" >Market fundamentals are more important than short-term sentiment<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_advantage_of_private_capital_is_becoming_increasingly_visible\"><\/span>The advantage of private capital is becoming increasingly visible<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Speed of execution, flexible financing structures and a higher tolerance for risk allow private investors to close transactions earlier in the market cycle and hold assets despite market volatility. As a result, their advantage over more constrained and less flexible institutional investors continues to grow.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Office_market_recovery_driven_by_occupier_demand\"><\/span>Office market recovery driven by occupier demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The office market is adapting to the new reality of work. Knight Frank\u2019s (Y)OUR SPACE survey, covering nearly 300 occupiers and more than 60 million sq m of space globally, shows a stabilisation of the hybrid work model, alongside the growing importance of office-based work, particularly among companies in the financial and professional services sectors.<\/p>\n<p>Occupier activity confirms this trend across most major markets. Global cities are recording the highest office leasing levels since the pandemic, as companies expand their occupied space, compete for the best locations amid limited supply, and optimise their real estate portfolios. In key locations, rental growth is once again being observed, while investor interest in the office segment is also increasing. The narrative of a permanent office market crisis is increasingly at odds with the data.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Retail_recovery_highlights_undervalued_sectors\"><\/span>Retail recovery highlights undervalued sectors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The retail real estate segment is regaining investment appeal thanks to the limited supply of new projects. In Australia, the sector achieved a total return of 9.2% in 2025, its best result since 2017, supported by years of limited development activity and rising tenant turnover.<\/p>\n<p>However, the repricing trend extends beyond a single market. In locations where the supply of new developments has been constrained, rental income stability is improving and investor sentiment is clearly strengthening. Increasing opportunities are emerging in sectors from which capital withdrew too quickly despite solid underlying fundamentals.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Large_transactions_in_Europe_signal_the_return_of_investor_confidence\"><\/span>Large transactions in Europe signal the return of investor confidence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Europe is seeing the return of large-scale transactions, particularly in the office sector. Private investors allocated USD 18.9 billion to European offices over the past year, and the sector is now among the most sought-after investment segments globally for 2026.<\/p>\n<p>Institutional capital is expected to follow this trend, focusing on prime assets that meet ESG requirements in central business districts, as well as selectively on secondary properties where price corrections have created attractive investment opportunities.<\/p>\n<p>Krzysztof Cipiur, Director, Capital Markets at Knight Frank, added:<\/p>\n<p>\u201cIn Poland, we are observing a dynamic increase in activity by both domestic and foreign private investors in the commercial real estate market. Private capital moved much faster than institutional investors to take advantage of emerging investment opportunities resulting from strong economic growth and attractive asset valuations in Poland.<\/p>\n<p>Poland is now among the fastest wealth-growing countries in the world, and the pace of growth in the number of billionaires is one of the highest globally. We forecast that their number will increase by as much as 123% over the next five years.<\/p>\n<p>The growing wealth of domestic capital is already reflected in the real estate market. The share of Polish investors in total transaction volume in 2025 was more than five times higher than the long-term average and reached 18%. We expect the share of private, local capital to continue increasing in the coming years.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Capital_flows_rebound_in_the_Asia-Pacific_region\"><\/span>Capital flows rebound in the Asia-Pacific region<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the Asia-Pacific region, cross-border investment by wealthy individuals reached its highest level since 2019, with capital from mainland China accounting for 46% of buying interest. Investment activity is being driven by price corrections and a change in investor approach.<\/p>\n<p>Younger investors are moving away from passive purchases of prestige assets towards more active value-enhancement strategies in the office, retail and hotel sectors. At the same time, capital from Singapore is increasingly returning to the domestic market in response to currency volatility, leading both to a recovery in cross-border demand and greater liquidity in key markets such as Singapore and Hong Kong.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"India_offers_a_more_stable_entry_point_for_global_capital\"><\/span>India offers a more stable entry point for global capital<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India\u2019s commercial real estate market has been significantly transformed by the growing role of domestic capital. Following a slowdown in foreign investment after the pandemic, the share of domestic investors increased from 11% of total private equity investment to nearly 26% in 2025.<\/p>\n<p>With GDP growth exceeding 7%, falling inflation and strong occupier demand, the market remains resilient. Leasing activity in both office and logistics space is reaching record levels, while the retail sector is gradually recovering. Thanks to the stronger position of domestic capital, India now offers more stable and lower-risk opportunities for global investors returning to the market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_fundamentals_are_more_important_than_short-term_sentiment\"><\/span>Market fundamentals are more important than short-term sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The report indicates that 2026 will favour investors focused on valuations, asset income and limited supply, rather than short-term volatility or current market sentiment. Markets such as the United Kingdom continue to attract strong investor interest despite negative sentiment, highlighting the growing divergence between market perception and actual capital allocation.<\/p>\n<p>Nick Braybrook, Global Head of Capital Markets at Knight Frank, commented:<\/p>\n<p>\u201cThe global commercial real estate market has clearly entered a new phase of the cycle, in which price corrections, supply-and-demand fundamentals, stabilising interest rates and greater income predictability are once again attracting capital back to the market. Recent global events have undoubtedly increased uncertainty, but the direction of the market continues to be driven by fundamentals and remains unchanged.<\/p>\n<p>Institutional investors are returning to real estate, but private capital continues to set the pace thanks to its flexibility and speed of execution. Over the past decade, the sophistication of private investors has also increased significantly. Commercial real estate is now seen as a key element of a diversified investment portfolio, offering stable income, potential for capital growth and relative security. In this new phase of the market, the investors best positioned to succeed will be those able to act quickly and decisively.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Knight Frank has published the 20th edition of its \u201cThe Wealth Report\u201d. According to this year\u2019s report, 2026 may bring a clear recovery in the global commercial real estate market, supported by the return of institutional capital estimated at USD 144 billion. This shift is taking place at a time when private capital continues to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2795,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[359,2789,3132,2767,3121,315,2281,2567,2688,64,2973,2731,333,2701],"class_list":["post-5519","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-australia","tag-beyond","tag-cite","tag-element","tag-esg","tag-hong-kong","tag-knight-frank","tag-krzysztof-cipiur","tag-leasing","tag-poland","tag-private-equity","tag-professional-services","tag-united-kingdom","tag-usd"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/5519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=5519"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/5519\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/2795"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=5519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=5519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=5519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}