Fund managers see a clearer path to a real estate recovery by 2026, provided investors can withstand the next major market shock. The outlook suggests a market becoming less vulnerable to sudden disruptions, a shift from recent volatility that has challenged the sector.

This confidence stems from a belief that the worst of the downturn may be over, allowing fundamentals to reassert themselves. For institutional investors, a steadier recovery timeline could influence allocation strategies, particularly in private real estate funds that have faced fundraising headwinds.

What happens next depends heavily on global economic conditions and capital flows. If the predicted rebound materializes, it could mark a significant turning point for private real estate, potentially reversing years of declining deal volumes and attracting fresh investment into the asset class.