Beyond traditional funds: the diversification of non-listed real estate
The way investors access non-listed real estate has broadened significantly over the past decade. While traditional fund structures/private REITs remain the dominant investment route, a wider range of vehicles is now playing an increasingly important role.
This evolution has taken place alongside significant market growth. Global non-listed real estate assets under management (AUM) increased from €0.7 trillion in 2011 to €3.1 trillion in 2025, creating room for new structures and approaches to emerge.
Despite this shift, traditional fund vehicles remain firmly in demand. Although the share of AUM allocated to non-listed real estate funds/private REITs declined from 68% to 56% over the period, in monetary terms, the allocations through these vehicles grew from around €0.5 trillion to €1.8 trillion. This trend shows that rather than moving away from traditional fund structures, the market has expanded in size and evolved into a more diversified access proposition at the same time.
*2024 Operating platforms introduced as a new category
One of the clearest periods of change came in the mid-2010s. Between 2014 and 2016, allocations to separate accounts investing directly into real estate increased from 18% to 23%, while joint ventures and club deals more than doubled from 6% to 13%.
These shifts reflected a growing preference among larger investors for tailored investment solutions. Separate accounts and joint ventures offer greater control over investment strategy and governance, helping to explain their growing presence within the market.
Joint ventures and club deals, in particular, have become a more established part of the investment landscape. Their share of total AUM peaked at 15% in 2019, equivalent to around €0.4 trillion, compared with just €0.03 trillion in 2011. Although their allocation has moderated since then, it remains well above levels seen at the start of the period, underlining the extent to which these structures have become embedded within the market.
*2024 Operating platforms introduced as a new category
Alongside changes in ownership structures, the role of non-listed debt products has also grown considerably. Their share increased from 1% of AUM in 2011 to 12% in 2025, while allocations grew from less than €0.01 trillion to almost €0.4 trillion.
The growth of private real estate debt reflects both the maturation of the asset class and sustained investor demand for income-oriented strategies. As highlighted in INREV's ”Baker's dozen” - Key 13 questions to understand the risk of investing in real estate debt funds, the growing prominence of debt has also brought greater investor focus to underlying risk factors, including leverage, liquidity and loan-level exposures. Recent INREV research continues to identify debt as one of investors' preferred routes into real estate, particularly during periods of market uncertainty and reduced bank lending activity.
The overall real estate picture is one of evolution rather than transformation. While non-listed real estate funds/private REITs still account for more than half of total global AUM, the share invested through other vehicle types rose from 32% in 2011 to 44% at the end of 2025.
As the non-listed real estate market expanded, investors adopted a broader mix of vehicles to take advantage of different opportunities, risk-return profiles and governance structures. The result is a global non-listed real estate landscape that remains anchored by traditional fund vehicles while offering a wider range of routes into the asset class than it did a decade ago.
If you’re interested in diving deeper into the data behind this blog, check out the latest INREV Fund Manager Survey and stay tuned for the next INREV Investment Intentions Survey coming soon in January 2027.