Sentiment among real estate leaders has shifted from cautious optimism to pragmatism, according to the Emerging Trends in Real Estate Europe 2026 report compiled by PwC and the Urban Land Institute (ULI).

The report says decision makers are increasingly concerned about the impacts of long-term deglobalisation and short- to medium-term geopolitical and economic uncertainty. The share of respondents worried about the impact of deglobalisation has more than doubled during the past two years to 70 percent. Broader international political instability (90 percent), the escalation of global conflicts (86 percent), and Europe’s economic growth prospects (77 percent), are raising even greater concerns. As a result, business confidence among European leaders has fallen slightly (45 percent compared with 50 percent), although expectations for improved business profitability by end of 2026 have risen to 50 percent (from 46 percent).

Country selection is also becoming a