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Market Insights Q3 2022

Sentiment towards European real estate continues to deteriorate on the back of persistently high inflation and rapid interest rate rises across the market.

Key highlights:

  • 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.

Press Release 

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