Investment opportunities are becoming more defined
Key takeaways for 2026
- The market is moving into a more constructive phase
- Technology plays a central role in investment execution
- Value-add and distressed assets present opportunities
How do you assess the sector’s current state as we enter 2026?
Robin Ubaghs: As we enter 2026, European commercial real estate is emerging from a prolonged period of repricing, slower transactions and capital reallocation. The past two years have been defined by higher interest rates, valuation uncertainty and a significant bid-ask gap, which suppressed deal activity across most asset classes. That reset phase appears to be largely behind us.
While challenges remain, particularly around refinancing and asset quality, the market is moving into a more constructive phase characterised by price discovery, selective liquidity, and a clearer separation between assets that can be actively repositioned and those that cannot. In that context, the opportunity set is becoming more defined, particularly for investors with capital, operational capability, and a long-term perspective.
What key transaction or milestone stood out for your business in the past 12 months, and why did it matter?
RU: For Prop.com, the most significant milestone over the past 12 months was the signing of our debut acquisition in Trier, Germany, for our €400 million European micro living pipeline. This transaction was important not only because it marked the deployment of capital at scale and saw the launch of several strategic partnerships, but because it validated our investment thesis at a moment when many market participants remained on the sidelines.
It also demonstrated our conviction in living sector fundamentals, our ability to source and execute in a cautious market, and the strength of our integrated investment, operating and technology platform. More broadly, it signalled our belief that periods of dislocation reward decisive, disciplined capital rather than passive market timing.
What are the main opportunities and prospects you see for the sector and for your business in 2026?
Paul Hohenstatt: Looking ahead, we see 2026 as a year in which opportunity increasingly favours specialist investors focused on living assets, value-add strategies, and distressed or special-situation acquisitions. Structural supply shortages across the European living sector remain unresolved, while affordability pressures, urbanisation and lifestyle changes continue to support demand for flexible, professionally managed housing formats such as micro-living.
At the same time, a sustained slowdown in transactions has created stress across parts of the capital stack, particularly among overleveraged owners and lenders managing non-performing or underperforming exposures. For businesses like Prop.com, this environment creates the opportunity to acquire assets at lower entry points, apply active asset management, and unlock value through operational improvement.
Technology plays a central role, enabling more efficient underwriting, greater transparency, and faster execution across the investment and management lifecycle.
What are your key strategic priorities for the year ahead?
PH: Our priorities for 2026 are centred on disciplined growth and execution. First, we will continue to scale our micro-living platform across core European markets, focusing on assets where we can apply hands-on operational expertise and cutting-edge technology through our local partnerships to drive performance.
Second, we will selectively target distressed and special-situation opportunities, particularly where complexity or capital constraints have limited competition.
Third, we will further embed our proprietary technology and blockchain-based infrastructure across acquisitions, asset management and reporting, enhancing transparency, efficiency, and decision-making for both the business and our investors.
Finally, we remain focused on capital discipline and risk management, ensuring that growth is underpinned by strong fundamentals, robust governance, and long-term alignment with our partners. In a market where execution increasingly defines outcomes, our strategy is designed to combine conviction with control.
Paul Hohenstatt, Robin Ubaghs, Prop.com
