As 2026 draws to a close, Mor Milo, co-founder and CEO of the commission-free real estate marketplace Relli, has a clear view of where private real estate is heading, even as he admits no one holds a crystal ball. From his vantage point watching thousands of investors and operators move through the market, several shifts stand out that could reshape investment strategies and operator behavior in the coming year.
The era of easy real estate returns is over, Milo says. After more than a decade of cheap debt, rising rates have thinned the margin for error, and operators are responding by underwriting far more conservatively and taking their time choosing deals. “Real estate is not the easy long play that it was,” he said. The result is a market where discipline and long-term thinking matter more than they have in years, a shift that will likely separate seasoned operators from those who relied on favorable financing conditions.
Milo expects 2027 to bring real pain for operators who have been, in his words, extending and pretending for too long. As conditions tighten, he believes weaker and mid-sized operators will either exit or merge into larger groups. He frames that consolidation as a net positive for investors: fewer operators, each with more assets and longer track records, makes the market easier to navigate. This consolidation could lead to a more stable investment environment, with survivors better equipped to manage risk and deliver consistent returns.
Where the opportunity is, Milo points to several sectors in flux. He sees office trading at significant discounts as owners move product, retail continuing to grow as people return to in-person experiences, and multifamily surprisingly underbuilt after two slow years of construction, which he expects to keep it a leading sector. He is more cautious on data centers, anticipating a slowdown as questions mount around an AI investment bubble and as communities push back on projects in their neighborhoods. Single-family rentals and vacation properties, he adds, look less attractive as higher financing and management costs erode the math that once made them appealing. These sector-specific insights could guide investors toward areas with stronger fundamentals and away from those facing headwinds.
Finally, Milo expects investor expectations around transparency to keep rising. Investors now have more leverage and more information than ever, and they increasingly treat strong digital reporting and communication as a baseline requirement. That favors nimble operators who can offer consistent updates and round-the-clock access, and it will pressure larger, legacy players to modernize systems they have long been able to do without. As transparency becomes table stakes, operators that fail to adapt may find themselves at a competitive disadvantage, while those that embrace digital tools could attract more investors and build trust.
Milo’s outlook underscores a broader shift in private real estate: a move away from easy returns toward a market that rewards discipline, consolidation, and transparency. For investors, this means a more navigable landscape with fewer but stronger operators; for operators, it signals the need to adapt or risk being left behind.
