Sentiment towards European real estate continues to deteriorate on the back of persistently high inflation and rapid interest rate rises across the market.
- The INREV Quarterly Fund Index has revealed a sharp correction in performance for the European non-listed real estate market in Q3 2022. The total return fell to -1.60%, marking the lowest quarterly performance since Q2 2009.
- The UK leads the correction with a total return of -4.79%. This compares with more moderate falls in performance for other core European markets, such as France (-1.39%), Germany (-1.38%), and the Nordics (-1.30%).
- Industrial/logistics assets display the largest relative decline in performance, falling from 4.21% in Q2 to -4.06% in Q3. With a total return of -0.18%, the residential sector delivered the best performance across main sectors in Q3.
- The INREV Sentiment Survey reveals further deterioration in sentiment. Over 80% of surveyed respondents indicate that their assessment of investment risk increased compared to previous period, as well as expecting a further slowdown in performance.
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INREV canvassed views from the membership to assess the dynamics and business-oriented implications for the industry. View our Market Insights and Sentiment and Valuation reports now.
Market Insights December 2022
Market Insights September 2022
Market Insights June 2022
Market Insights March 2022
Market Insights December 2021
Market Insights September 2021
Market Insights June 2021
Market Insights March 2021
Market Insights December 2020
Market Insights September 2020
Market Insights July 2020
A member sentiment survey first conducted in May 2020 to understand the impact on investment plans, operations and expected market performance.