Trends in the European Real Estate Market Through 2026: Looking Ahead

The global real estate sector is undergoing a profound transformation driven by digitalisation, sustainability, and new investment models.
Not only are housing formats and investment approaches changing, but so is the very understanding of real estate’s value — as an asset, a living environment, and a tool for global mobility.

Dubadu has identified the most relevant trends shaping the European real estate market as we move toward 2026.

1. Sustainability and energy efficiency: the new market standard

Sustainability will be one of the defining forces of the real estate market in 2026. European regulations require all new buildings to meet nearly zero-energy building (NZEB) standards, increasing the value of energy-efficient and environmentally responsible properties.

Environmental performance is increasingly becoming a decisive factor in property selection, alongside location and price.

2. Shifting focus away from capitals and emerging investment hubs

As major capitals such as Madrid, Paris, and London continue to grow more expensive, secondary European cities are attracting increasing investor attention. Cities like Porto, Valencia, and Málaga offer a compelling balance between returns and quality of life: property prices are around 25% lower than in major capitals, while average annual price growth reaches approximately 7%.

According to CBRE’s European real estate outlook for 2025, more than 45% of investors plan to diversify their portfolios toward emerging markets in the Mediterranean region and Eastern Europe.

3. PropTech and the digital transformation of real estate

Property technologies (PropTech) will continue to reshape how real estate is bought, managed, and financed. Platforms powered by artificial intelligence, virtual reality, and blockchain are significantly improving the efficiency of real estate transactions.
What we can expect:

·        Virtual 3D tours becoming the standard for international transactions, supporting up to 80% of purchases before an in-person visit.

·        Blockchain technologies and smart contracts accelerating and securing transaction processes.

·        Next-generation analytics tools enabling investors to identify promising assets and markets in real time.

4. Video as the new language of property search

By 2026, video will be one of the core tools for property selection. For international buyers and investors, video tours make it possible to assess space, light, layout, and surroundings long before a physical visit.

Video shortens decision-making cycles, builds trust, and makes the market more accessible for remote transactions, relocation, and cross-border investments. Gradually, this format is replacing static photography and becoming the standard of the digital real estate market.

5. New housing formats for remote work and mobile lifestyles

The rise of remote work is redefining housing demand among international professionals. Demand for mid-term and long-term rentals in coastal and rural areas is expected to grow.

In cities such as Lisbon, Barcelona, and Athens, professionals increasingly seek properties with flexible layouts, high-speed internet, and proximity to international communities.

6. Continued growth of real estate investment

International real estate investment is expected to keep growing in 2026. Countries such as Spain, Portugal, and Greece continue to attract foreign investors thanks to economic stability, quality of life, and residence-by-investment programs.

According to the World Bank, foreign direct investment in the European real estate sector increased by 9% in 2024, and this trend is expected to continue.

7. Southern Europe as a key investment destination in 2026

Southern Europe is set to become one of the main investment hubs in 2026. Spain and Portugal stand out due to economic recovery, political stability, and strong tourism and real estate sectors.

·        Spain: forecasts suggest average housing prices will rise by 3–5% in 2026, with Madrid, Valencia, and Málaga leading the growth.

·        Portugal: remains one of the most reliable destinations for real estate investment. Despite the cancellation of the Golden Visa program, options such as investor residence permits and the D8 visa remain highly attractive.

8. Key investment segments for the coming years

The most promising real estate segments heading into 2026 include:

·        environmentally sustainable residential properties, supported by strong demand and preferential financing;

·        coworking and coliving spaces, reflecting new work and lifestyle patterns;

·        tourism and hospitality investments, with the sector showing steady recovery and an estimated annual growth of around 10%;

·        restoration of historic buildings, supported by tax incentives and grant programs in several European countries.

The year 2026 is set to become a turning point for the global real estate market. Digitalisation, sustainability, and diversification will play a decisive role for investors seeking long-term value and resilient returns.