In the weeks and months leading up to MIPIM, sentiment across European real estate markets had been steadily improving. Geopolitical and economic pressures were increasingly being absorbed into pricing and were no longer seen as a barrier to transaction activity.

In a market previously constrained by uncertainty discussions heading into MIPIM week, saw the time in Cannes as a temperature test of long-term confidence and whether the escalation of the Iran conflict would derail the hard-won shift in market sentiment.

1. Conviction built on connection

Despite ongoing geopolitical tensions, there was no meaningful dilution of investment conviction in core sectors such as operational real estate, prime offices, logistics and data centres as well as residential investments in core European markets such as Germany. Instead, MIPIM highlighted how long-term investment decisions are increasingly underpinned by the strength of relationships between capital and operating partners. Trust and alignment between partners are seen as critical tools for managing risk. At the same time, there is a clear shift away from thematic portfolio acquisitions to achieve scale towards specialist asset class expertise and rigorous, site-specific diligence and the need to build new platforms based on that premise.

2. Private capital is active, but it is targeting scale through asset class specialism

Private equity investors, family offices and other capital sources appear more willing to deploy, but they are focusing on specific higher quality or high conviction assets and specific opportunities rather than backing sectors wholesale. The emphasis was on long-term demand, strong sponsorship, operational resilience and credible delivery. Where well-capitalised investors do have an edge is in their ability to move quickly and underwrite conviction-led opportunities in building platforms by matching capital to sector specialism, particularly in parts of the market where quality and execution matter most.

3. Debt markets regain momentum

Debt products continue to attract interest in this dislocated market, as investors are drawn to their attractive risk-adjusted returns. Offsetting any perceived market softness through reduced basis remains a key theme. Debt financing continues to be highly brokered and competitive and consequently remains a “borrower’s market”, with sponsors prizing certainty of execution with trusted advisors and counterparties in order to trade through macro headwinds. Private Lenders are increasingly able to position themselves more competitively by offering more aggressive pricing. This does not stem from taking on distressed or special‑situations risk; rather, these players are targeting core+ and value‑add acquisitions to lend against, enabling them to capture deal flow while staying within conservative underwriting boundaries.

4. Refocus on asset classes

“Beds, Meds and Sheds” remain the focus, but with the emphasis much more firmly on “Meds and Sheds”. Within living, the mood was notably more cautious: “PBSA jitters” were in the air, and conventional multifamily/BTR is no longer delivering the kind of return profile many investors had become used to. The more convincing living stories were single-family rental and senior living, where institutional appetite continues to deepen. Logistics and light industrial remained among the market’s highest-conviction asset classes, although the discussion was increasingly shaped by geopolitics and supply-chain resilience; appetite is still strong, but availability of genuinely investable stock remains tight. In some markets, a clear “phase 2” in logistics is emerging, marked by disposals – including several large portfolio sales – from sponsors to other sponsors. This is creating more structured, institution-to-institution trading dynamics, pointing to a more mature and capital-driven market. Healthcare real estate, meanwhile, was more firmly in focus than ever, supported by compelling long-term fundamentals and its attraction as a durable, needs-driven investment play.

Hotels remain a highly attractive asset class, and in several markets the operating companies (OpCo) managing them are proving just as appealing as the real estate itself. Long‑term franchise agreements with well‑known brands can be a meaningful advantage in negotiations – although in certain cases they can also create hurdles, particularly when they constrain flexibility for operators or investors.

5. Data Centres & AI: From niche to mainstream

MIPIM 2026 showed how far data centres have moved from a niche sector into a mainstream focus, with AI-led demand making digital infrastructure one of the clearest growth stories in real estate. At the same time, the key constraints remain tangible: land, grid access, power supply, planning, sustainability and the ability to deliver AI-ready facilities at scale. The wider AI discussion also became more practical, focusing on how technology can improve underwriting, asset management and building performance. The common thread was connection: not only in the physical and digital sense, but in the human sense too, with successful delivery depending on close alignment between investors, developers, operators, local authorities and infrastructure providers. The markets best placed to benefit will be those able to bring these elements together most effectively.

A final word: Conviction is back, but it’s more disciplined

MIPIM 2026 made one thing clear: conviction has not disappeared, it has evolved. In a more complex and selective market, success depends on the strength of relationships, the depth of expertise, and the ability to execute with clarity and confidence.

In the uncertain waters of 2026, we predict a phase where personal connection and trust will become fundamental to investment decisions.

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