Structural supply constraints have become one of the defining forces shaping global real estate investment, according to Hines’ 2026 Mid Year Outlook.
The report finds that long-term demand has accelerated, fueled by trends such as artificial intelligence and electrification, at a time when new development remains difficult to deliver across many sectors and markets. As competition for land and power intensifies, Hines believes the next phase of the real estate cycle will increasingly reward investors who recognize the scarcity advantage and identify markets where long-term demand has been reinforced by meaningful barriers to future supply.
“Investors have spent the past several years focused on inflation, interest rates and economic uncertainty,” said David Steinbach, global CIO at Hines. “Those factors remain important, but we believe the defining investment question has shifted. Increasingly, the issue isn't whether demand exists. It’s whether mar
