Market Insights Q4 2022

Market Insights shows a significant fall in performance in Q4 2022

The speed of correction of the current downturn looks to be more abrupt and synchronised across the markets, with real estate prices adjustments reflecting the weaker economic environment.

Key highlights include: 

• Pan-European non-listed real estate returns reached -5.64% on an asset level and -6.19% on a fund level, notably weaker than the already negative performance recorded in Q3 2022. 
• Performance declined across Europe, with the UK posting the weakest -11.72% asset level Q4 2022 total return, albeit partially driven by stronger revaluations typical for the fourth quarter.
• The industrial/logistics sector saw a further decline in performance with a Q4 2022 asset level total return of -10.68%, bringing a 12-month rolling total return to -5.00% exactly a year after peaking at 26.82% in Q4 2021.
• The March 2023 INREV Consensus Indicator Survey points to a more stabilised phase, with neutral expectations for European real estate for the first time since Russia’s invasion of Ukraine in February 2022. Only 9% of investors and investment managers surveyed report decreased investment risks.

Press release

Download the Market Insights March 2023 report and the INREV Consensus Indicator and Valuation Survey Q4 2022 Infographics below