In a context of a renewed real estate cycle, what are the opportunities in this market? Between geographic diversification, targeted sector exposure and local anchoring of management teams, the 2026 outlook looks favorable, driven notably by the recovery of European markets and the maintenance of yields on SCPI.
With Guillaume Masset, Principal AM, Jean-François Chaury, Advenis REIM and Bruno Pauly, Figen AI
A new favorable real estate cycle for investment in 2026
Guillaume Masset: It is important to recall that today we are at a very favorable moment in the real estate market since we are at the start of a new long-term cycle. We have gone through several years of market correction and today we are in full recovery. It is very favorable to invest today, namely to invest in diversified markets.
What seems interesting to us is investing in the United States and in Europe, meaning the real estate cycles in the United States and Europe are different, there are cycle offsets and today the opportunity is in the United States and in sectors that have very strong fundamentals such as healthcare, education, data centers, logistics — these are sectors we particularly target today.
However, we have indeed seen past missteps. What also seems very important to us is to invest in markets we control. We are present on the ground with teams at the heart of the territories to understand the subtleties of each market.
At Principal, our promise is that we invest only in markets where we are present, with teams.
Southern Europe, Germany, Northern Europe: differentiated dynamics
Jean-François Chaury: At Advenis REIM, we indeed have 3 SCPI across 3 different zones: Germany, Southern Europe and Northern Europe.
- We still see fairly strong growth in Southern Europe, notably in all hotel assets, education assets.
- In Germany, a very strong recovery in activity related to massive cash investments into the economy.
- Finally, on the Eden side, I was in Finland for two days: a market that is in full growth, 2–3 difficult years but with a very strong rebound last year, in 2025, and investment opportunities because there are very few players in the Finnish market, with industrial sites that greatly interest us.
SCPI and diversification: strengthened prospects for 2026
"I leave with a conviction: that indeed, diversification at the sectoral level as well as at the geographic level and at the level of management companies, given each one's strategies, gives absolutely exciting prospects for 2026."
— Bruno Pauly, Figen AI
Bruno Pauly: I leave with a conviction: that indeed, diversification at the sectoral level as well as at the geographic level and at the level of management companies, given each one's strategies, gives absolutely exciting prospects for 2026.
We have seen an increase in the average yield rate on SCPIs. I am convinced that this increase will be sustainable, given the strategies that were presented to us and the favorable environment for investments in the real estate universe.
Key Takeaways
- Invest in diversified markets, in the United States and in Europe, with cycle offsets.
- Target sectors with very strong fundamentals: healthcare, education, data centers, logistics.
- 3 observed zones: Germany, Southern Europe, Northern Europe, with differentiated dynamics (including Finland).
- Diversification (sectoral, geographic, management companies) and maintenance of SCPI yields: favorable 2026 prospects.