Simon Durkin: Greece is one of southern Europe’s most compelling RE investment destinations

As CEO of ULI Europe, how do you plan to translate improving market sentiment into tangible investment opportunities across European real estate? 

Our current industry research provides important insights into investment trends and opportunities across Europe, and paints a clear picture of industry sentiment. The ULI/PwC Emerging Trends in Real Estate Europe 2026 report reveals a shift from cautious optimism to pragmatic realism amid significant geopolitical tensions. Seventy percent of real estate leaders expressed concern over deglobalisation, while 77 percent worry about Europe’s economic growth prospects.

Although the latest Global Emerging Trends report signals a new industry cycle driven by increased capital availability, greater stability, and returning liquidity, persistent uncertainty from deglobalisation, volatile geopolitics, and events like the Iran war continues to test investor nerve, making volatility the new normal.

Consequently, we’ve seen leaders prioritise diversification across sectors and countries. Niche operational sectors now dominate investment and development rankings in Europe, even as they currently attract comparatively less capital than traditional core assets like offices.

Data centres, new energy infrastructure, and student housing best illustrate this long-term investor focus on demographic, digitalisation, and decarbonisation trends. Data centres remain the top “sector to watch” globally and in Europe, propelled by extraordinary AI growth that is rapidly moving the sector from niche to mainstream investment in western markets.

What concrete actions will ULI Europe take to accelerate the delivery of affordable housing across major European cities facing supply shortages? 

Europe’s housing system is at a tipping point.

There is an urgent challenge around the issue of housing affordability, and the situation is also inextricably linked to sustainability. Affordability and decarbonisation are deeply interconnected, yet often treated separately. Millions of households face rising rents and energy costs, while over 75% of Europe’s building stock is old and energy inefficient.

The need for affordable, low-carbon housing is urgent, but progress remains too slow. Systemic barriers—including fragmented planning, misaligned incentives, skills shortages, and data gaps—continue to hinder delivery.

ULI’s C Change for Housing programme addresses this by identifying key barriers, mapping scalable solutions, and pinpointing where collective action can drive the greatest impact. Working with industry partners, it co-develops, tests, and scales practical solutions to make affordable, low-carbon housing the norm.

A central focus is redefining the business case: demonstrating long-term value, establishing clearer metrics and definitions, and building a shared language that enables the sector to act with greater confidence and speed.  

How can public-private partnerships be strengthened to scale affordable housing while maintaining investor returns in today’s higher-cost environment? 

Affordable housing lies at the critical intersection of public good and private capital, making effective risk-sharing between sectors essential. Public–private partnerships (PPPs) enable this by leveraging each side’s strengths: public entities provide land and policy support, while private partners contribute capital and execution expertise.

Well-structured PPPs deliver more than individual projects—they foster long-term trust, lower overall investment risk, and create inclusive, resilient housing systems. Past efforts, however, have often suffered from misaligned goals, complex procurement, and unbalanced risk allocation, with the public sector bearing too much burden and private margins remaining slim.

Emerging models address these flaws through greater transparency, outcome-based governance, and clearly defined roles. Complementing PPPs, impact investment funds offer blended finance that delivers financial returns alongside measurable social and environmental benefits, reducing risk for private investors and boosting participation.

Enhancing public-private-civic collaboration on affordable housing is a key intervention in ULI’s C Change for Housing initiative, which identifies systemic barriers to affordable, low-carbon housing, maps areas of momentum for scaling, and pinpoints where targeted collective action can have the greatest impact.

You emphasize operational real estate—how will this shift reshape traditional investment strategies and asset management approaches in Europe? 

Real estate in Europe is evolving from a passive ownership model focused on rent collection to an operational asset class emphasizing active management, service delivery, and income growth. ULI’s Emerging Trends in Real Estate reports, in partnership with PwC, have tracked this transition over several years.

In a higher-rate environment, investors are prioritising stronger net operating income (NOI) through operational performance rather than capital gains. Sectors with active operating models—such as data centres, new energy infrastructure, and living sectors such as student, senior, and affordable housing—continue to lead investment and development prospects.

This is driving capital toward vertically integrated platforms, operator partnerships, and joint ventures. Investors are scrutinising the business behind the asset and, in some cases, acquiring operating companies alongside physical properties.

The industry is also seeking talent with operational expertise and private equity mindsets. ULI’s Operational Real Estate Product Council facilitates collaboration on these evolving models, risks, and valuation approaches. These are exactly the questions the industry is grappling with now, and they will only become more pressing as operational complexity increases.

How do you see AI and data transforming decision-making in real estate, particularly for large institutional investors? 

ULI drives research, thought leadership, and education to help real estate and land use professionals navigate change in the built environment. With artificial intelligence reshaping global markets, operations, decision-making, and daily work, AI has become a central focus for the industry.

The latest ULI and PwC Emerging Trends in Real Estate report reveals rapid adoption: around three-quarters of real estate firms now use AI or machine learning tools, up from just one-third two years ago. There is also strong optimism about AI’s potential to boost efficiency across many activities, alongside a growing need for new, non-traditional skills.

To address this, ULI has partnered with VARi Knowledge Partners and the University of St. Gallen to launch a practical AI education programme. Designed for non-technical professionals, it equips participants with accessible, relevant tools to enhance decision-making, investment strategy, and innovation in real estate. 

Given Greece’s return to investment-grade status and the forthcoming reclassification of the Athens Stock Exchange to developed market status, do you expect institutional investors to increase their exposure to Greek assets in the near term? 

Institutional interest in Greece is growing, with capital actively exploring opportunities, though deployment remains selective and measured due to investor expectations on product quality and pricing, according to our ULI & PwC Emerging Trends in Real Estate report. 

Demand fundamentals are strong across offices, which is performing well with rising rents and new supply let before completion, logistics, which is supported by Greece’s location and continued supply scarcity, hospitality, which benefits from resilient tourism, and living sectors like student housing and rentals. International investors are engaged but closings hinge on institutional-grade assets and realistic pricing, with bid-ask gaps and limited large institutional-grade assets constraining volumes.

Greece is increasingly viewed alongside Spain, Italy, and Portugal as a sought-after Southern European market. Strong fundamentals and improving debt access position it well for greater institutional capital once supply-side issues ease.