Global capital is undergoing a significant transformation as institutional investors strategically reposition their real estate portfolios for 2026, according to Colliers' comprehensive Global Investor Outlook report released November 18, 2025.
Active Strategies Replace Passive Approaches
The landscape of commercial real estate investment is shifting dramatically away from passive structures toward more hands-on approaches. Nearly half of investors (49%) now favor direct investments and separate accounts, with platform joint ventures and mergers and acquisitions gaining substantial traction.
Luke Dawson, Head of Global and EMEA Capital Markets at Colliers, observed that "investors are changing gears" following a challenging period, with capital moving decisively toward stability and opportunity through controlled strategies and partnerships.
The research identified a significant disconnect between investor preferences and available fund options. While 37% of investors prefer core and core-plus strategies, only 9% of real estate funds being raised target these areas, prompting a fundamental rethink of market engagement strategies.
Global Diversification Accelerates
Geographic allocation patterns show remarkable changes, with multi-regional strategies accounting for nearly 30% of global fundraising. North America's share of fundraising dropped to 40% in 2025 year-to-date from 50% in 2024, while Europe surged by 50% and Asia Pacific experienced an extraordinary 130% year-on-year increase.
Growing investor interest is focusing on markets including Japan, Australia, and India, reflecting a broader push for international diversification amid evolving market conditions.
Damian Harrington, Director and Head of Research for Global Capital Markets and EMEA at Colliers, explained that platform deals are increasingly popular because they "give investors a seat at the table and greater control" while offering faster execution, flexibility, and scale.
Sector Preferences Transform Investment Landscape
Asset class preferences are undergoing dramatic changes, with data centers emerging as the standout performer. Data centers accounted for 31% of global real estate funds raised from Q1 through Q3 2025, displacing industrial properties as the second-most popular asset type.
Office properties, which have been overshadowed since the pandemic began, are now staging a global comeback as expanded return-to-office mandates take effect. Alternative sectors including student housing, self-storage, and healthcare are also gaining significant traction, driven by powerful demographic trends and persistent supply-demand imbalances.
Dawson emphasized that "investor preferences are quickly evolving" as capital chases both innovation and resilience in sectors ranging from digital infrastructure to demographic-driven alternatives.
The Colliers report concludes that market fundamentals are improving, liquidity is returning, and pricing expectations are normalizing, creating renewed optimism for 2026 despite ongoing cost pressures and geopolitical risks.
