Retail investment (€37.0bn) remained relatively stable compared to last year’s volumes. The momentum observed in 2025 after two years of subdued investment activity tapered as investors looked at the implications the geopolitical situation has for the real estate outlook. The war in the Middle East has weighed significantly on investor sentiment, as the conflict impacts directly on commodity and consumer goods prices. However, even with these concerns, investors are still committed towards good value assets with growth potential.
In Q1 2026, retail held a 20% share of total commercial real estate investment. The steady uptick in market share observed in recent years was mostly driven by the luxury sector. Nonetheless, increases in shopping centre investment volumes signal a shift in preference towards assets that offer an increased array of functionality and flexibility for occupiers, especially with the normalization of omnichannel shopping.