Success will no longer depend solely on the location of a property, but on how it operates, its level of technological advancement, and the extent to which it aligns with long-term trends such as digitalization, the energy transition, and demographic shifts.
Investors are seeking properties and companies capable of enduring over time, adapting, and leveraging technology to enhance their value.
The next phase of the market is characterized by a clear shift in capital allocation. Investment funds are moving away from traditional asset classes, such as offices and retail spaces, which have faced pressures in recent years. In their place, properties connected to critical infrastructure and addressing structural needs of the economy and society are gaining traction.
Particular attention is being directed toward digital infrastructure, logistics (warehouses and distribution networks), renewable energy, as well as residential real estate, including apartment buildings, rental housing, student residences, and senior care facilities. These sectors are supported by long-term demographic and technological trends and offer more stable cash flows.
Artificial Intelligence as a Value Driver
Technology—and particularly artificial intelligence (AI)—has become a key differentiating factor. Companies that systematically integrate AI into their operations enjoy a clear competitive advantage. AI is utilized for data analysis, investment assessment, portfolio management, and revenue optimization.
According to PwC’s 29th Global CEO Survey, 53% of CEOs in the real estate sector report having a clear roadmap for implementing AI initiatives. However, only 29% report revenue growth from its use, and 32% report cost reduction. This indicates that the technology is still maturing, though the direction is clear.
In the context of M&A, companies with advanced, technologically “smart” operating models achieve higher valuations and attract greater interest. Conversely, those that lag technologically face increased scrutiny and pricing pressures.
Recovery with Selectivity
The M&A market is expected to regain momentum in 2026 as prices stabilize and refinancing needs increase. However, the recovery will not be uniform.
Activity will focus on sectors with resilient demand, such as data centers, logistics, and affordable housing. Conversely, office and retail properties are likely to attract only a limited pool of investors, unless offered at substantially lower prices or repurposed for alternative uses.
Scandinavian Countries in the Spotlight
Northern Europe—particularly Sweden, Finland, Denmark, and Norway—is demonstrating notable dynamism. These countries combine advanced digital infrastructure, abundant renewable energy resources, and a stable regulatory environment.
The region is projected to experience a population growth of 7.7% by 2050, well above the Eurozone average, generating sustained demand for housing and social infrastructure. Additionally, the availability of “green” energy positions the region as an attractive destination for investments in data centers and energy infrastructure.
Strengthening Cross-Border Investments
Cross-border capital allocations are on the rise. While the United States remains a central player, investor interest in Europe is growing. Investors are pursuing diversification, access to new markets, and exposure to sectors aligned with the energy transition and digital economy.
Simultaneously, insurance and pension funds are increasingly directing capital toward private markets and private credit instruments, financing acquisitions and refinancing at a time when traditional bank lending remains constrained.