Simon Chinn*,
Vice President Research & Advisory Services, Urban Land Institute - EuropePragmatism Prevails in European Real Estate
This year, the mood among real estate leaders has shifted from cautious optimism to pragmatic realism. Political instability, global conflicts, and Europe’s uneven economic prospects are all weighing heavily on decision-makers.
Despite these challenges, business confidence remains steady, and there is a sense that sentiment among industry leaders has shifted from tacit optimism towards taking a more practical approach to address the market conditions as they exist.
Investors are favouring mature, liquid markets with stable legal frameworks, with London, Madrid, Paris, Berlin, and Amsterdam topping the rankings for investment and development prospects.
AI is emerging as a transformative force, with 75% of industry respondents now using AI-based solutions—up from 51% last year. Over the next 18 months, most expect to deploy AI across marketing, leasing, property management, and asset operations.
On the sustainability front, decarbonisation remains a long-term priority, but there’s growing pushback against the perceived bureaucracy of ESG. While 85% still see ESG as important, fewer leaders now view it as a driver of strategy compared to last year.
Greece: Stability Meets Structural Challenges
Athens’ macroeconomic outlook is supported by a more stable political and business environment, with real GDP forecast to grow by 1.4% annually through 2028. However, the market faces an affordability crisis and supply constraints. Transaction volumes in Athens fell by 27% year-on-year to €0.3bn (Q4 2024–Q3 2025), reflecting subdued activity despite resilient pricing. Sellers remain firm, and there’s little pressure to reduce prices.
ESG is increasingly embedded in underwriting, with a focus on energy efficiency and decarbonisation. Climate risks are a growing concern, but valuation methodologies still lag behind risk awareness.
Europe’s real estate sector is navigating uncertainty with a practical mindset, focusing on innovation, diversification, and long-term value. Greece exemplifies both the opportunities and the challenges facing the region – where stability and capital are present, but structural issues must be addressed for sustainable growth.
Simon Chinn* will be the keynote speaker at the Athens launch of Emerging Trends in Real Estate® Europe 2026, taking place on Wednesday, 10 December 2026, at 18:00, at Megaro Karatza, 82–84 Aiolou Street, Athens.
