JLL's regular view on global real estate dynamics, covering: investment, hotels, office, logistics, retail and living, as well as CRE market trends.
It is a unique combination of updates from professionals on the ground and insights from our leading research experts.
Key Highlights
- Steady economic growth expected in 2026. Economic conditions continued to stabilize through the end of 2025. Steady growth is anticipated across major economies this year, supported by lower interest rates, contained inflation and increasing fiscal spending.
- Global real estate activity strengthening. Global office leasing rose to its highest level since the pandemic in 2025. Industrial demand is rebounding in many major markets, while retailers continue to expand in core locations.
- Capital markets momentum built substantially through the fourth quarter of 2025. Strong debt market liquidity globally and declining Treasury volatility in the U.S. combined to create increasingly favorable conditions, reinforcing investor conviction and accelerating deployment activity.
Improving stability with positive outlook for 2026
Economic conditions continued to stabilize during the final quarter of 2025 despite ongoing geopolitical uncertainty. The outlook for 2026 is positive with most major markets expected to see steady growth, supported by low or falling policy interest rates, low and contained inflation, and increasing fiscal spending.
Occupier activity was varied across markets and property types but broadly strengthened during the quarter. Despite longer deal timelines, requirements are rising in many industrial markets as demand rebounds. Global office leasing rose further to its highest annual level since the pandemic, while retailers are still expanding in core locations.
Global capital markets continued to build momentum in the fourth quarter as economic growth improved, inflation pressures eased, and interest rates neared neutral levels. Highly liquid debt markets and steady property fundamentals fueled greater transaction activity and reinforced investor confidence, with fundraising marking a notable rebound after several challenging years. Investor sentiment firmly shifted toward risk-on behavior, supported by competitive lending conditions and persistent relative value in commercial real estate.
Global Real Estate Health Monitor
Hotels: Transaction liquidity recovering
Following the elevated growth seen in 2022 and 2023, global revenue per available room (RevPAR) trends are normalizing further. In U.S. dollar terms, markets across EMEA generally led RevPAR growth in 2025, followed by Asia Pacific. Hotel transaction volumes are on a solid rebound with direct investment in 2025 up 22% from the low point in 2023.
Future trends: Global hotel brands prioritize unit growth over management contracts
Short-term: With slowing new supply, hotel brands are using their balance sheets to boost unit growth via M&A, strategic partnerships and conversions. The global portion of franchised hotels (i.e., those managed by third parties) is expected to increase further, creating opportunities in the highly fragmented third-party management space, with new players, increased partnerships and M&A likely to emerge.
Long-term: The global travel landscape is undergoing a significant transformation. Markets like India and Saudi Arabia are poised to play increasingly significant roles in shaping future travel patterns, driven by shifts in demographics, economic power and consumer preferences.
As consumers increasingly focus on experiences, traditional hospitality brands are expanding their offerings to new verticals, boosting the growth of lifestyle hotels.
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