In PGIM's 2026 Real Estate Outlooks, our investment research team focuses on the following themes:
- Real estate returns are expected to continue to improve as lower interest rates and uncertainty help the occupier recovery, which, given ongoing low development activity, feeds into rental growth.
- Investor acumen will be tested as city and sector variations to the outlook remain large. Nonetheless, history suggests markets will do better than expected.
- Opportunities will continue to span the needs-based living, logistics, data centers and credit markets alongside the demand recovery in hotels, retail and offices.
