A field report from IGIS Europe IGIS Europe attended Le Marché International des Professionnels de l’Immobilier, better know as “MIPIM”, in March 2026. Having observed the event over several consecutive years, this year’s MIPIM stood out for its particularly nuanced and complex market sentiment. It was difficult to say that conditions had meaningfully improved from last year, yet equally difficult to characterize the market as fully subdued—there was a clear coexistence of cautious optimism and lingering uncertainty. One of the first impressions on-site was that the overall energy had not recovered to anticipated levels. Whilst meetings continued and the atmosphere appeared busy on the surface, empty spaces were noticeable throughout the venue, and both the marina and exhibition areas showed visibly less activity compared to previous years. [Photo: IGIS Europe — Empty berths where docks were once fully occupied] [Photo: IGIS Europe — Attendees were more scarce compared to recent years] The most notable change was the absence of Middle Eastern investors. Amidst ongoing geopolitical instability, many investors from the region—historically among the most prominent participants with large-scale pavilions—were notably absent. In contrast, Japan expanded its “Invest Japan” presence to strengthen local partnerships, whilst U.S. investors continued to take an aggressive stance, actively recruiting talent in key cities such as London and focusing on value-add strategies. A Market in Motion, but Without Conviction If the overall sentiment of MIPIM 2026 were to be summarized in one sentence, it would be this: the market has begun to move again, but not yet with conviction. While there were still voices pointing toward recovery, the prevailing tone on the ground was markedly cautious. Investors were seeking opportunities but at the same time scrutinizing risks with heightened sensitivity. This perspective was further reinforced through the institutional investor panel discussion. Panelists highlighted that real estate has underperformed relative to other asset classes over the past three years. Transaction volumes remain significantly below historical cycle averages, and the pace of recovery appears slower compared to the post-Global Financial Crisis rebound. While the market may be forming a bottom, the slope of recovery is expected to be gradual. Importantly, the current downturn can no longer be attributed solely to interest rates. In recent years, rising interest rates and tightening liquidity have been the dominant drivers. Today, however, investors face additional structural forces, particularly geopolitical risks, alongside separate transformative shifts driven by AI. The cautious sentiment observed at MIPIM reflects how deeply these evolving factors are being incorporated into investor decision-making. From Sectors to Assets and Operations Investors consistently emphasized that real estate is evolving into an operational business. Historically, real estate—particularly office assets with long-term leases—behaved more like financial instruments. Securing a well-located asset with long-term leases typically ensured stable cash flows. However, this model is no longer sufficient to generate attractive returns. Instead, performance increasingly depends on active asset management—driving rental growth, optimizing costs, enhancing tenant experience, and improving service quality. In this context, investment focus is shifting away from “which sector to invest in” toward “which assets to select and how effectively they can be operated.” Risk Perception and Selective Investing From an investment strategy perspective, a notable commonality emerged. The majority of institutional investors participating in the panel indicated a preference for Core and Core Plus strategies, with a selective focus on opportunities that offer stable cash flows alongside clear value-add potential. Key concerns cited by investors include limited liquidity, valuation uncertainty, and geopolitical risk. Notably, geopolitical risk is increasingly viewed not as a temporary disruption, but a structural factor likely to persist over the medium to long term. The reduced presence of Middle Eastern investors at this year’s event is a direct manifestation of this. Europe: Attractive, But Structurally Complex Investor sentiment toward Europe was broadly constructive. While the U.S. was previously the most attractive investment destination across most sectors, Europe is increasingly viewed as a competitive alternative. In certain segments, such as residential, logistics, and hospitality, Europe is emerging as the preferred destination for global capital. Notwithstanding, Europe remains far from being a straightforward market. Despite often being viewed as a single region, it is highly fragmented, with significant differences across countries in terms of regulation, taxation, language, and market structure. As a result, rising investor interest does not necessarily translate into successful execution. In this environment, success depends heavily on local partnerships, execution capabilities, and a deep understanding of the underlying assets and granular market data. Data Centres, AI, and the Changing Boundaries of Real Estate AI and data centers were also prominent themes this year. However, not all institutional investors view data centers as traditional real estate investments. Some classify them as infrastructure, while others prefer to gain exposure to the AI cycle through listed markets or alternative asset classes. In other words, while data centers are undoubtedly an important theme, they do not represent a universally applicable opportunity for all real estate investors. More practically, discussions focused on AI’s role in asset management and operational efficiency rather than acquisition or development of data centres. Increasingly, competitive advantage is expected to be gained on how effectively existing portfolios are managed and enhanced, rather than acquiring thematic assets. In this context, AI is being positioned as key in optimising real asset operations. Conclusion: A Market Resetting Its Foundations Taken together, MIPIM 2026 did not signal the beginning of a clear recovery phase. Rather, it highlighted a market still operating under constrained liquidity and elevated uncertainty –that is increasingly structural rather than cyclical in nature. The tone of the event reflected this reality. The visible gaps in activity, reduced energy levels, and absence of key investor groups were not merely incidental but indicative of broader shifts in capital flows and investor sentiment. At the same time, the outlook is not purely negative. One clear takeaway is that the market is returning to fundamentals. The importance of disciplined asset selection, operational capability, and adaptability across scenarios has become more pronounced than ever. One message from the panels stood out: “Prepare, rather than predict.” While the path to recovery remains uncertain, periods like this tend to favor investors and partners who combine fundamental discipline, local insight, and strong execution capabilities. Ultimately, MIPIM 2026 was less about confirming a recovery and more about observing a market in the process of recalibrating its investment framework. And in that process, the criteria for what truly drives performance are becoming increasingly clear. Written by Sungeok (David) Chang, Head of IGIS Europe Organized by Soyeong Park, Brand Communication Manager ──────────── -This content has been prepared for informational purposes only and is not intended to serve as a basis for investment decision-making by users. It is not created for the purpose of promoting, soliciting, or recommending financial investment products, providing investment advice, or making stock recommendations. The company makes no express or implied representations or warranties regarding the accuracy or completeness of any materials or information provided in this content. Furthermore, the company assumes no responsibility or liability for any damages or losses incurred because of investment decisions made based on this content. Potential investors shall not raise any objections in this regard. -The above information is based on data as of March 2026 and has been prepared in compliance with applicable laws and internal control standards. 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