2026 Real Estate Outlooks

The 2026 global real estate landscape continues to highlight how opportunities are country, capital, sector, style and submarket specific, with diverse investment themes across regions.

Abstract Blue Cube Sphere
United States Europe Asia Pacific Mexico Private CRE Credit
United States Europe Asia Pacific Mexico Private CRE Credit

United States

Most in-place retails leases are at below-market rents and high occupancies limit tenants' relocation options, giving owners the ability to raise rents.

Download Outlook
7.6% Retail sector returns are forecasted to reach 7.6% In 2026, up from a 2021 low of -7.51%

EUROPE

Investor sentiment surveys point to an expected pick-up in transaction volume in 2026 across all sectors, but especially office and apartments.

Download Outlook

ASIA PACIFIC

Across Asia Pacific office markets, the flight to quality points to ongoing rental outperformance of CBD over non-CBD offices.

Download Outlook

MEXICO

Industrial leasing has been strong across Mexico, with vacancies below historic averages across most of the country, including large markets like Mexico City and Monterrey.

Download Outlook

PRIVATE CRE CREDIT

Rising multifamily origination share and upcoming loan maturities underscore strong demand for multifamily and near-term transitional financing for bridge-to-agency lending in the United States.

Download Outlook

References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.

 

The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.

 

Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.


5019305