Mounting risks and weaker near term performance expectations signal a shift in sentiment for European real estate.
Key highlights include:
- The Q2 Pan-European non-listed real estate returns reached 2.69% on an asset level and 2.65% on a fund level. This is the second consecutive quarterly decline since the recent peak in Q4 2021 and reveals continuing downward pressure on European real estate performance.
- The slowdown in performance was evident across nearly all geographies, with exception of France and Italy. According to the Asset Level Index, offices was the only sector to report a quarter-on-quarter increase in performance. Despite a 206 bps quarter-on-quarter decline, industrial/logistics assets achieved the highest sectoral return of 4.18%.
- The INREV September 2022 Sentiment Survey reveals a clear turning point in investor and investment managers’ assessment of risk as well as weaker near term performance expectations. Three quarters of survey respondents expect further slowdown in the short-term European real estate performance and 57% are less confident about increasing weight to European real estate.
Download the Market Insights September 2022 report and the INREV Sentiment and Valuation Survey Q2 2022 Infographics below.
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.
A member sentiment survey first conducted in May 2020 to understand the impact on investment plans, operations and expected market performance.