Market Insights indicate sentiment downturn at the start of 2026

The latest edition of the INREV Market Insights reflects a mixed picture for European real estate. The Q4 2025 INREV Quarterly Fund Index posted a total return of 1.24%, up from 1.02% a quarter earlier. This is the strongest performance of the year, bringing the annualised 2025 performance to 4.43%. The INREV European Quarterly Asset Level Index returned 1.28 % at year-end. Meanwhile, the headline Consensus Indicator declined from 59.4 in December to 54.7 in March, reflecting growing concerns over an economic slowdown amid rising geopolitical tensions.

Key highlights:

• While market performance showed further signs of improvement at year-end 2025, sentiment weakened amid rising geopolitical tensions in the Middle East, increasing inflationary pressures and concerns over a global economic slowdown. 
• Q4 2025 results from the Global ODCE Index highlighted the continued stability of European open-end diversified core equity (ODCE) funds, marking seven consecutive quarters of positive total returns. At 1.12%, the European ODCE Index outperformed both its Asian (-0.57%) and US (0.70%) counterparts. 
• At the asset level, Spain led performance in Q4 with a total return of 2.69%, primarily driven by retail. The Nordics followed at 2.07%. Among the four largest markets, the Netherlands was the strongest performer (1.88%), while France and Germany lagged behind. 
• Retail assets outperformed residential at year-end 2025, delivering 1.88%, up from 1.53% in the previous quarter. This resulted in a 2025 annualised return of 7.85%, slightly below the residential sector (8.16%).

Download the March 2026 Market Insights report, infographics and Consensus Indicator below.