What's next for the INREV Guidelines: future-proofing the industry's playbook
The non-listed real estate industry has changed considerably in recent years. Market uncertainty, evolving investment strategies and new sectors and operational models are reshaping how investors assess value and allocate capital. These shifts have also prompted a review of the standards that underpin the industry. That is why INREV is currently conducting a consultation on its Guidelines, seeking member feedback to ensure they remain relevant, practical and fit for the future.
For INREV's ongoing Guidelines consultation, the objective is not simply to update existing standards. It is about ensuring the industry's playbook continues to support market transparency, reflects evolving investor needs and provides a practical framework for members operating in a changing market.
For Constantin Sorlescu, INREV's Director of Professional Standards and Sustainability, the timing is clear. The industry is facing a more challenging environment and competition for capital, with greater scrutiny on performance, transparency and value creation. As investors increasingly adopt a total portfolio approach, real estate must continue demonstrating its role as a strategic allocation within investment portfolios.
‘The objective is not change for the sake of change,’ Constantin explains. ‘We're equipping the industry with the right toolkit to more accurately reflect the true value of real estate and help members navigate a rapidly evolving market.’
At the heart of the consultation are three key focus areas: modernising NAV, incorporating operational real estate considerations and updating the Due Diligence Questionnaire (DDQ).
'We're equipping the industry with the right toolkit to more accurately reflect the true value of real estate and help members navigate a rapidly evolving market.'
Modernising NAV for tomorrow's market
One of the most significant proposed updates concerns the INREV NAV framework. Originally introduced in 2007, the NAV module has provided the industry with a trusted valuation framework for almost two decades. As operational real estate strategies continue to grow, traditional approaches to valuation are being tested. Real estate is increasingly moving beyond a ‘brick-and-mortar’ proposition to become a business model that creates value through operations as well as assets.
To reflect this evolution, the consultation proposes enhancements that help members better capture and demonstrate economic value. Alongside a new adjustment for operational real estate strategies, proposed changes include additional guidance on the treatment of assumptions, clearer interpretations and practical examples designed to improve consistency and usability.
The proposed revisions also include extending the amortisation periods of set-up and acquisition expenses for long-term holders and introducing a refined structure that makes the guidance easier to navigate and implement. According to Constantin, these changes recognise that NAV remains one of the most important metrics in non-listed real estate, influencing performance measurement, fund pricing and fees.
Reflecting the rise of operational real estate
Another major proposal is the introduction of a dedicated operational real estate module within the Guidelines, alongside the integration of operational real estate considerations throughout other sections.
The change reflects the growing importance of sectors where operational performance plays a central role in value creation. As these strategies become more prominent, the industry needs clearer governance frameworks, guidance on accountability and alignment mechanisms to manage increasingly complex structures.
The new framework aims to provide consistency while allowing managers to better demonstrate the additional value their operational platforms generate.
Streamlining the DDQ
The consultation also includes a comprehensive review of the DDQ, INREV’s most used template. While the current questionnaire reflects decades of industry expertise, members have consistently highlighted the need for greater efficiency.
The proposed update streamlines the process by reducing duplication, simplifying questions and moving from three phases to two chapters. At the same time, it incorporates new areas of investor focus, including operational real estate, artificial intelligence, liquidity management and anti-money laundering considerations.
Your feedback matters
The consultation has already been shaped by months of member engagement, but the process is not finished. INREV is encouraging members to review the proposals and contribute feedback before the final version is developed. Every comment received will be considered as part of the review process.
Members can visit the consultation page to review the proposed changes for each key area, access the supporting documents and submit feedback through the consultation forms.
There is also one final opportunity to join the conversation in person at the INREV Guidelines Review Consultation roundtable in London on 12 October. Following the close of the consultation period on 16 October, all feedback will be carefully evaluated and considered as part of the final review process.
The updated Guidelines and accompanying self-assessment tool are expected to be released in the second half of January 2027, with a dedicated transition period to support members as they prepare for implementation.
As Constantin puts it, the ambition is straightforward: to make the INREV Guidelines clearer, more accessible and more rewarding for members, while continuing to strengthen the foundation of the non-listed real estate industry for years to come.
