Market Update first quarter 2026

Geopolitical uncertainty has returned to the foreground in early 2026, reshaping short term dynamics across real asset markets. Higher energy prices, elevated bond yields and tighter risk premiums contrast with remarkably resilient occupier fundamentals.

• Retail fundamentals improved, with financial vacancy at multi‑year lows and rental growth concentrated in prime high streets.

• Residential continues to be driven by structural undersupply, with rental growth well above historic averages despite easing capital growth.

• Offices remain polarised: demand and pricing power are increasingly concentrated in the G5-InterCity locations.

• Science parks benefit from strong long‑term demand linked to innovation, life sciences and technological sovereignty.

• Farmland values continue to outperform inflation, underpinned by scarcity and policy constraints.

• Renewables are entering a more system‑driven phase, where grid capacity, flexibility and policy design increasingly shape returns.