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What Global Real Estate Investors Are Backing in the Next Decade

Published on April 02, 2026

As macroeconomic signals shift and new technologies emerge, the world's most seasoned investors are moving beyond traditional boundaries. In a high-stakes discussion at Cityscape Global 2025, real estate asset managers and regulators revealed where capital is flowing, which sectors are truly "AI-resilient", and why the future of investment may lie in the democratisation of ownership. The big question remains: in a post-zero-rate world, how do you outperform the market?

What Global Real Estate Investors Are Backing in the Next Decade

The traditional reliance on geographic borders is fading as the world's most seasoned capital allocators prioritise thematic, specialist products that can withstand macroeconomic noise. Ryan Chilcote sat down with Fahad Hamdan (Assistant Deputy of Investment, Capital Market Authority), Fadi Khatib (CEO - EMEA, BNP Paribas Real Estate Middle East), and Paul Nearchou (Partner, Deutsche Finance International) to decode the sophisticated strategies shaping the next decade of real estate.

1.From Prime Office to Purpose-Led Portfolios

For decades, the commercial office sector was the central pillar of global real estate portfolios, providing steady returns and high liquidity. However, a significant shift is underway as capital increasingly flows toward specialist asset classes that align with modern demographic trends.

Fadi Khatib noted that institutional investors are now allocating less toward traditional offices in favour of 'specialist real estate sectors' such as living, logistics, and data centres. This transition is not merely a change in preference but a strategic response to a high-interest-rate environment where investors seek to capture specific growth drivers like e-commerce and ageing populations.

This thematic approach allows investors to look past short-term market volatility to find sectors with enduring success. Paul Nearchou explained that for his firm, geography is becoming a secondary focus compared to finding 'thematic products' that succeed irrespective of the noise.

In European markets, this often manifests as a deep dive into student accommodation and 'build-to-rent' models. Conversely, in Saudi Arabia, the immense scale of undersupply across almost all product types offers a rare opportunity for developers and investors to build entire ecosystems from the ground up.

2.Is Your Portfolio 'AI-Resilient?

As artificial intelligence becomes integrated into every facet of global business, the physical infrastructure supporting it has moved from a niche interest to a top-tier asset class. Data centres are now viewed as essential, counter-cyclical assets, with Fadi Khatib highlighting that the sector still only represents 1.2% of all European real estate despite the immense demand driven by AI. These properties often secure highly creditworthy tenants on 10-to-20-year indexed leases, providing a level of income stability that is increasingly rare in more traditional sectors.

However, the path to successful data centre investment comes with its challenges. Paul Nearchou warned of a potential Achilles' heel regarding capital intensity and technological obsolescence. With rapidly evolving technology, there is a risk of the facility becoming obsolete before the lease concludes. The consensus among the panel was that success in this space requires a sophisticated bet on power availability and land planning, rather than simply focusing on physical real estate.

3.Saudi Arabia’s Trillion-Riyal Ambition

While many global markets are grappling with stagnating growth, the Kingdom is operating on an entirely different scale, supported by the diverse initiatives of Vision 2030. Fahad Hamdan shared that assets under management in Saudi Arabia have now reached 1.2 trillion SAR, with over 320 billion SAR specifically allocated to real estate. This represents a massive pool of capital that is being deployed with a unique focus: 90% of these real estate investments are currently in development projects rather than existing income-generating assets.

To support this ambitious pipeline, the Capital Market Authority (CMA) is actively fostering innovation to diversify financing channels. Hamdan revealed that the authority is currently opening a dialogue for new applications involving tokenisation and blockchain technology. “We believe we might finalise this application at the beginning of 2026,” he noted, suggesting that the democratisation of real estate access through fractional ownership is just over the horizon for the Kingdom.

4.The New Rules of Risk

In this new landscape, real estate must prove its value through fundamental performance rather than financial engineering. Fadi Khatib observed that the days of buying at a 4.5% cap rate and financing at 2% are over. Today, investors must return to the basics, focusing on occupancy, rental growth, and supply-demand dynamics.

This shift requires a more hands-on approach to asset management. Paul Nearchou argued that investors can no longer rely on the economic cycle to lift their portfolios. Instead, success comes from 'rolling up your sleeves' to drive value through operational excellence and by building specialised platforms.

5.Building Long-Term Confidence

For institutional capital to commit for the long term, a market must demonstrate transparency, liquidity, and a robust legal framework. Fadi Khatib pointed to London as a benchmark for market depth, where transparency in rental rates and cap rates allows investors to enter and exit with confidence. Paul Nearchou echoed this, stating that Deutsche Finance International often turns away from markets where the depth of liquidity is not yet sufficient to ensure a safe exit in a down market.

In response to these international requirements, Fahad Hamdan outlined how the CMA is proactively safeguarding capital in the Kingdom. By increasing disclosure requirements and segregating the duties of boards and executive management, the regulator is ensuring a high standard of corporate governance. Furthermore, the introduction of 'class action suits' provides a streamlined litigation process for groups of investors, further bolstering the Kingdom’s reputation as a secure destination for global capital.

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