‘The market will not change overnight’: Recovery drags in 2026 as geopolitical strife persists

The PERE Podcast kicks off 2026 by examining major themes expected to shape private real estate markets, considering macro trends like geopolitics and AI, along with investment market dynamics. The discussion acknowledges the initial geopolitical turbulence of 2026, particularly US actions in Venezuela, but suggests institutional investors are unlikely to drastically alter strategies. A more pressing concern is the potential bursting of an AI bubble, prompting contingency planning around investments in data centers versus needs-based real estate like living sectors. Despite these concerns, Savills forecasts a 15% increase in real estate investment, surpassing $1 trillion, with a gentle recovery expected. David Steinbach of Heinz notes strong real estate fundamentals and reemerging rent growth, anticipating a more active dealmaking environment and expanding investment opportunities across sectors, including a potential shift towards equity in the office market.