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45of real estate leaders confirm data, security and infrastructure will have the biggest potential impact on the success of their tech transformation strategy
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32have developed new offerings to target new markets as a result of tariff-driven costs
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65confirm geopolitical instability or social unrest affected their decision to change plans for international expansion
Yet beneath this veneer of stability lies a more anxious strategic reality. Economic uncertainty and political instability are now the two most significant forces constraining growth, cited by 56% and 37% of executives respectively. Leaders are therefore adopting a more defensive and adaptive posture, prioritising cost control, operational resilience and continuity planning in ways not seen since the early 2020s.
The defining theme of this year’s findings is not volatility itself. Real estate executives have weathered that for several cycles, and worse, but there’s a greater need now to build organisations capable of adapting continuously amid structural uncertainty.
This is evident in the sector’s strategic priorities. For the first time, three areas sit equally at the top of the agenda, each cited by 28% of surveyed leaders – supply chain and operations optimisation, restructuring and cost reduction, and business continuity planning. The trio shows a recalibration from long‑cycle planning to nimble, scenario‑based decision‑making. Leaders are no longer simply forecasting, they are preparing to pivot.
The investment landscape offers a similar duality. While uncertainty looms, 59% of real estate businesses are increasing financial investment, up six points from 2025. Human capital commitment is nearly as strong, with 58% boosting workforce investment, providing clear evidence that even in a cost‑constrained climate, leaders recognise the need to build capability with human assets for long‑term competitiveness.
Where investment is directed is equally revealing. Executives cite acquiring new customers, improving efficiency, strengthening customer/client relationships and it’s cashflow/financing strategy as the primary areas for additional capital allocation.
Technology transformation, however, has softened as a near‑term priority. Just over half of sector leaders now report an active transformation strategy – an 18‑point drop from 2025, placing the sector behind other industries. Though AI adoption continues, its perceived impact has moderated, and leaders are more focused on strengthening data infrastructure, security and operational technology rather than pursuing cutting‑edge implementations.
International expansion aspirations persist. Two‑thirds of businesses have plans to enter new markets, but these ambitions are increasingly shaped by geopolitics. Germany, the US and the UK top the list of preferred destinations, yet half of leaders have scaled back or cancelled expansion plans due to rising tariff complexity and regulatory risk. Three‑quarters remain confident they can manage tariff‑driven costs, but expansion has become more selective, more cautious and more compliance‑led.
The sector enters 2026 stronger than many predicted, buoyed by stable revenue performance and an executive class experienced in managing disruption. But this resilience is now intertwined with realism. Real estate leaders recognise that the challenge ahead is not merely navigating uncertainty, it is building organisational frameworks to adapt because foundations are now rocked by structural uncertainty.
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