W. P. Carey Focuses on Stability as European Market Recovers

2025 marked a turning point for European real estate – a year of gradual stabilisation that laid the foundations for renewed activity. For investors and occupiers alike, the conversation has shifted from correction to positioning. While macroeconomic and geopolitical challenges persist, the prevailing sentiment heading into 2026 is positive.

Across the continent, tailwinds are strengthening: a narrowing price gap between buyers and sellers, and improving transaction visibility support a more constructive outlook for deal flow in 2026. Infrastructure and defence spending packages have created a compelling long-term pipeline of opportunities. While these projects will take some time to materialise, they underscore the breadth of structural investment themes emerging in the European market.

In the near term, we see attractive opportunities in industrial, select retail and specialised assets, yet, at W. P. Carey, our focus is not on chasing what’s ‘hot’ in the market or reacting to short-term trends. We remain sector-agnostic in our approach, and our focus remains on durable, mission-critical assets.

For the sale-leaseback market, we anticipate activity to continue picking up. A tightening lending market caused by both increasingly restrictive traditional lenders and a pull-back from the overcrowded private debt side is likely to reinforce the relative advantages of alternative financing options such as sale-leasebacks. All the while, the divergent evolution of private credit across markets will remain a theme to watch.

Ultimately, as we move into 2026, W. P. Carey’s approach remains unchanged: steady, disciplined and long-term. In a market slowly finding its balance, we see opportunity not in speculation, but in stability. As an all-equity buyer, we are well-positioned to build and execute our deal pipeline.

2026 Real Estate Outlook: Christopher Mertlitz, Head of European Investments, W. P. Carey