Real estate: how resilience yields opportunities in 2026

As geopolitical, economic, technological and environmental pressures reshape the landscape, investors have a generational opportunity to build and own the mission-critical assets that underpin resilient economies and societies.

Why resilience matters now

Recent events—from government investment in defence technology to global supply chain disruptions—have underscored the need for the physical and digital infrastructure that can weather uncertainty.

Real estate is fundamental to this transformation, with new opportunities emerging. By identifying sources of structurally higher demand, investors can capture opportunities from the need to support those systems that keep economies and communities functioning, even in more turbulent times.

Here are four areas where we see resilience driving demand and creating options for real estate investors:

1. Industrial property—anchoring economic resilience

The global push for reindustrialisation is reshaping industrial real estate. Policies promoting domestic production have led global brands to invest billions of dollars in expanding manufacturing, starting in the US and now visible elsewhere.

In Europe, defence and economic autonomy are now top priorities. For example, the European Union’s (EU) €80 billion (US$93.3 billion) Chips Act is designed to support autonomy in the digital economy and its Security and Action for Europe (SAFE) Instrument aims to build a more cohesive approach to defence.

Similar European policies for chemicals, pharmaceuticals, energy and food production, are designed to secure critical value chains. This rethink is driving higher demand for modern research and development facilities, production sites and logistics warehouses, while a clear impact on income growth can be seen in Chart 1.

Resilience in action: By bringing production closer to home, companies—and the properties they occupy—are better insulated from global disruptions. For investors, industrial assets offer potential for stronger income growth and returns, supported by these structural shifts in demand.

2. Housing—building resilient communities

Housing is more than shelter—it is the foundation of resilient societies. In Europe, ‘rented residential’ has become the most transacted sector, and in 2026 it remains a top investment theme. The urgent need for new homes is finally aligning with investor goals and more supportive policy.

For example, Germany faces a chronic housing shortage which has led to strong policy interventions that often increase the barriers to new supply, leading to the predicted ongoing shortfalls shown in Chart 2. However, government reforms, such as the ‘Bau-Turbo’ plan and some €23.5 billion in additional funding by 2029, are accelerating development of affordable subsidised housing.

This has created a new opportunity to source stable, inflation-linked returns that are backed by factors driving long-term demand and supported by financial incentives and deal structures that meet the needs of investors, as well as the people searching for affordable homes.

Meanwhile, the UK’s ‘build-to-rent’ (BtR) sector is also gaining momentum. By focusing on community-centric developments—carefully-designed housing with inclusive amenities, green spaces and resident services—investors can foster resilient communities and reduce tenant turnover.

BtR schemes on semi-developed ‘brownfield’ sites can help stimulate local economies and infrastructure, while the sector’s small market share (compared to other markets) suggests significant growth potential for investors in the UK.

Resilience in action: Investing in community-focused housing supports social stability, community resilience and the opportunity for investors to build scalable, purpose-driven residential portfolios.

3. Retrofitting—climate resilience for residential real estate

Some 75% of EU residential buildings have poor energy performance. To tackle this, the revised Energy Performance of Buildings Directive (EPBD) is raising the bar, mandating minimum energy standards and promoting the retrofitting of properties. Furthermore, from 2027, the EU Emissions Trading System II will require real estate investors to reduce emissions or offset them, adding urgency to retrofitting.

Upgrading homes for energy efficiency is not just about compliance—it is about future-proofing assets against climate risk. Properties that meet new standards will benefit from lower operating costs for both landlords and tenants—leading to stronger appeal and enhanced value. There is increasing evidence that the differences in efficiency between apartments are driving polarisation in investment performance.

Resilience in action: For investors looking for enhanced returns from residential assets in 2026, this is a chance to add value by decarbonising and modernising Europe’s ageing housing stock, aligning with sustainable investing goals and supporting resilient, climate-conscious portfolios.

4. Data centres—digital resilience for the future

Data centres are now critical infrastructure. As artificial intelligence (AI) and real-time connectivity become essential to economic and social resilience, demand for data centre capacity is set to soar—from 82 gigawatts (GW) in 2025 to 219GW by 2030.

While concerns about sustainability, overdevelopment and obsolescence exist, there is immense pressure to build data processing capacity and technological resilience. The ‘FLAPD’ markets of Frankfurt, London, Amsterdam, Paris and Dublin lead Europe’s drive towards data autonomy, yet the opportunity is broadening as the UK and Europe look to increase resilience and source new capacity in locations that are hooked up to reliable and renewable energy sources. Other regions are on the same path.

Resilience in action: Data centres support national security through technological autonomy, ensuring economic continuity. They form a key part of the digital backbone of modern society and may be an attractive option for investor portfolios in the digital era.

Final thoughts

Real estate is central to building resilient economies and societies. As investors look for opportunities outside traditional commercial assets in 2026, industrial property, affordable and community-centric housing, energy-efficient retrofits and data centres may be some of the most compelling strategies.

Investors who incorporate resilience into their thematic strategies—by focusing on assets that support economic, social and environmental stability—will be best positioned for long-term success in 2026 and for the decades beyond.