The UK has retained its position as the top preferred destination for real estate investors in Europe, followed by Germany, in the INREV Investment Intentions Survey 2026.

Investors are attracted to the UK market’s scale, liquidity and transparency, the survey shows. Spain, meanwhile, remains firmly established in third place, supported by strong demand in the living sector.

The report reveals that Europe continues to dominate as a global real estate destination for property investors, accounting for seven of the top 10 preferred global markets.

Asia-Pacific investors in particular are seeking exposure to European assets as part of their recovery positioning, accounting for 31% of respondents that favour the region, while outbound investments to the US has shrunk to 16% of investment.

Meanwhile, allocations to European investment have risen 20 basis points above the previous average target of 13.9%.

Real estate debt funds have regained the position of most popular route for accessing European real estate investment in 2026, after a year in second place, reflecting investors’ demand for income and downside protection.

Joint ventures, club deals and non-listed real estate funds also feature prominently, as investors seek flexible, risk-aware exposure supported by local market expertise.

Interest in non-listed real estate funds has also risen from 8% to 17% on a net basis compared with last year, according to INREV.

By sector, residential is the top investor preferences globally and in Europe for the third year running, supported by demographic trends and persistent housing undersupply. The sector also leads over a five-year average, with a strong 80% preference, ahead of industrial and logistics at 71%.

Industrial and logistics continues to attract strong interest, although interest has waned as a fall in pricing slows and growth moderates.

Investor interest in offices and development has increased, with both sectors jointly ranking as the third most preferred in Europe, cited by 56% of respondents.

Globally, investor confidence in real estate has strengthened significantly to its highest level since the 2019 survey. The findings signal growing expectations of market recovery, following a prolonged period of falling values across global real estate markets.

Some 38% of investor respondents globally expect allocations to increase over the next two years, while 28% anticipate a decrease.

Iryna Pylypchuk, INREV’s director of research and market information, said: “After several years of market correction and uncertainty, the 2026 Investment Intentions Survey suggests investors are clearly positioning for a recovery, but the approach feels different.

“Investors are tackling the next phase of the cycle with greater discipline, deploying capital selectively across both core and high-risk strategies to drive returns. ”