Global Property Markets Enter a More Selective Phase

Global real estate entered the second half of 2026 with steady economic growth, but market performance became increasingly uneven. Global growth is projected at approximately 2.8%, supported by investment in infrastructure, technology, energy security and data centres.

Institutional capital remains active in markets offering stronger fundamentals. India recorded USD 4.1 billion in institutional property investment during the first half of 2026, representing a 58% year-on-year increase. Saudi Arabia also continued to benefit from Vision 2030, with residential property accounting for around 45% of investment activity.

Dubai maintained strong transaction momentum, with Q2 property deals reaching AED 108.1 billion, supported by record off-plan demand and continued international investor interest.

Buyers Focus on Value and Quality

Residential markets showed mixed movements. Hong Kong’s mass residential values increased 2.0% month-on-month, while office vacancy declined to 13.3%. Canada also saw improving buyer activity, with Toronto sales rising 9.4% year-on-year as borrowing costs eased.

In contrast, Australia’s national dwelling values declined 0.4% in June, reflecting affordability pressures and more cautious buyer sentiment.

Malaysia’s market is not facing a broad downturn, but it is becoming more selective. Buyers are increasingly prioritising realistic pricing, transit connectivity and cash-flow sustainability, creating opportunities in well-connected growth corridors.

Outlook

The second half of 2026 is expected to reward disciplined investors rather than momentum-driven buyers. Markets supported by infrastructure investment, limited supply, demographic growth and policy reforms are likely to remain resilient.

Quality assets in strategic locations should continue to outperform, while overpriced or poorly connected properties may face longer selling periods and greater pricing pressure.