A new report from Invesco (Nov 2025) shows growing investor confidence in European real estate as income stability returns to the sector. Demand for logistics, residential, and mixed-use developments remains solid, particularly in Germany and France, where inflation-linked rent structures help protect long-term yields.
After two years of volatility and valuation corrections, institutional investors are once again allocating to property funds — this time focusing on sustainable income rather than speculative growth. With interest rates expected to peak soon, the European property market could outperform other alternative assets in 2026.
This renewed appetite for real assets is reshaping portfolio strategies, as investors diversify away from traditional equities and crypto holdings. Real estate is increasingly viewed as a tangible hedge against inflation and currency devaluation.
Why it matters for crypto: A stronger real-estate outlook might redirect liquidity away from digital assets in the short term. Yet, the growing overlap between real-asset tokenization and blockchain infrastructure could attract hybrid investors to both sectors.
