1. Tunisia: Mideast tensions don’t erode North Africa hotel bookings
North Africa’s swiftly growing hotel market is entering a more uncertain phase as the war in the Middle East weighs on near-term travel demand and booking confidence. But sources in the region said long-term investment pipelines in countries like Tunisia and Egypt are unlikely to be affected, as broader data paints a more resilient picture.
In the last half decade, the hospitality sector in North Africa, particularly in Egypt, has demonstrated strong and sustained growth, supported by a steady increase in international tourist arrivals and the rising global appeal of Red Sea destinations, said Stuart Leven, CEO of Orascom Hotels Management. Tunisia hotel operations are being affected by travel alerts tied to the war in Iran, as well as rising consumer use of Airbnb, but the country’s long-term future is seen as robust, said Leila Ben-Gacem, owner of boutique hotel Dar Ben Gacem in Tunis, Tunisia.
2. UK: Property dealmakers navigate crisis climate
The United Kingdom’s property investment market continues to operate in a state of “permacrisis” from major economic and political events like the war in the Middle East, though leasing demand remains steady in categories such as retail logistics, according to analysts at this year’s UK Real Estate Investment & Infrastructure Forum, among the country’s largest real estate conferences.
Tim Crighton, who leads the retail logistics team for Cushman & Wakefield in Europe, the Middle East and Africa, said the war in Iran has hit investor confidence, increasing the cost of debt and creating more caution around how people are pricing exit yields. “It makes capital more selective and, when you have bids, those bids are more genuine and more considered,” Crighton said. Analysts said development remains under pressure from construction and fuel price inflation.
3. France: Spanish investor eyes prominent Paris office building
The investment vehicle of Spanish billionaire Amancio Ortega, whose company owns retail brands Zara, Pull&Bear, Bershka, Stradivarius and Massimo Dutti, is reported to be interested in a prominent 45,100-square-meter Paris office property known as Capital 8.
Ortega’s Pontegadea has reportedly been granted an exclusivity period, and negotiations are said to be centered around a price tag of €850 million, according to Business Immo sources and reporting by Bloomberg. The sale of the business center was launched last fall, with owner Invesco Real Estate targeting a selling price approaching €1 billion for the property. It underwent an extensive renovation after Invesco acquired it from Unibail-Rodamco-Westfield in 2018.
4. Germany: Frankfurt office deals slow to materialize
Erich Schwaiger no longer appears to have exclusive purchase rights to the Opernturm office tower in Frankfurt, Germany, after the Munich-based investor was unable to secure €850 million financing that would have made the deal one of the largest office transactions in Europe in recent years, according to The Financial Times.
Analysts cite factors including effects of the Iran war on financing, as at least two major planned office transactions in Frankfurt are now off the table. After an extremely weak year for the region’s investment market, it looked just a few months ago as if the sale of the Opernturm, which translates to “Opera Tower,” and several other major deals could lead to better results in 2026.
5. Canada: New water parks must ride wave of financing, engineering challenges
After years of delays and tens of millions of dollars in cost overruns, the Oceania indoor water park opened its doors this year in Beloeil, Quebec, a notable feat in a business where getting an announced project to the finish line can be filled with obstacles.
While a day of slides and splash pads may appear carefree, the economics behind indoor water parks are anything but. Financing, building and operating them profitably requires deep pockets, patience and a high tolerance for risk, a reality illustrated by how few such projects ever open. “Most people don’t realize how many water park projects never make it past the announcement stage,” said David Sangree, president and founder of consulting firm Hotel & Leisure Advisors.
6. US: Meta cuts 20% of Seattle workforce to offset AI investments
The future of Meta’s sprawling Seattle-area real estate footprint is drawing attention as the social media giant rolls out plans to cut about 20% of its regional workforce in an aggressive push toward artificial intelligence. The Silicon Valley technology company is deleting nearly 1,400 jobs in the area, according to information filed with the Washington state Employment Security Department.
Planned layoffs will affect teams scattered across multiple offices that the Facebook parent leases in the area, including hubs in Seattle, Bellevue and Redmond. Meta has “been shedding office space since returning to the office post-pandemic,” company spokesperson Tracy Clayton told CoStar News, indicating those cuts are likely to continue as the company sprints to compete in the global AI boom.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.