Europe’s commercial real estate recovery is expected to take longer than previously anticipated as geopolitical uncertainty, elevated borrowing costs and regulatory pressures continue to weigh on investor confidence, according to the “Emerging Trends in Real Estate Europe 2027” report by PwC and the Urban Land Institute.
The report, based on surveys and interviews with 1,498 real estate professionals, found that 45 percent of respondents expect business profitability to improve in 2027, down from 50 percent in the previous year’s survey. Meanwhile, 42 percent anticipate an improvement in the broader business environment, compared with 45 percent a year earlier.
Investor caution persists despite resilient occupier demand and improving opportunities in certain markets. Institutional investors remain selective about deploying capital, while f
