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 INREV March 2023 Sentiment 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.
Download the Market Insights March 2023 report and the INREV Sentiment and Valuation Survey Q4 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.
This is a member sentiment survey that was first conducted in May 2020 to understand the impact on investment plans, operations and expected market performance.