Real estate · Industry brief

M&A activity in the MENA region totaled 390 deals worth $46.7 billion in the first half of 2026, down from 434 deals worth $58.8 billion in the same period last year, according to EY-Parthenon's M&A Insights report. Deal momentum accelerated in the second quarter with May and June accounting for 61% of Q2 volume and 79% of deal value. Domestic transactions drove activity, with domestic deal value reaching $16.0 billion between March and June—more than four times the prior year—led by large transactions across real estate, power and utilities, and technology sectors, with government-related entities playing a leading role in infrastructure and national transformation programs.

Pan-European commercial property values increased 0.3% in Q2 2026, marking eight consecutive quarters of positive appreciation according to Altus Group's analysis of €30 billion in assets under management across 16 countries. The appreciation moderated from Q1's 0.6% gain, with residential performing strongest at 0.7% sequential growth and 3.3% year-over-year, while office remained the weakest sector at 0.8% annual growth. Value gains were primarily supported by improving cashflow fundamentals including rising rents and lower capital expenditure assumptions, though yield expansion continued to temper overall appreciation across industrial, office, and retail sectors.