The latest edition of the INREV Market Insights gives mixed signals for European real estate. Market performance remains positive, while the general sentiment is more cautious. The headline June Consensus Indicator result fell for the second consecutive quarter to 52.2.
The Q1 2025 INREV Quarterly Fund Index posted a total return of 1.04%, down from 1.33% a quarter earlier. The one year rolling capital growth turned positive (0.58%). Meanwhile, the INREV European Quarterly Asset Level Index returned 1.72% in Q1 2025.
Key highlights:
- All the main geographies delivered considerably stronger returns in Q1 2025 compared to Q1 2024, with France and Germany even posting positive returns
- The industrial/logistics sector props up returns across main markets, while student housing broke into the top three best performing sectors this quarter, and emerged as the most preferred segment, capturing 26% net interest.
- Confidence in the German market has been renewed, displaying its strongest sentiment reading since December 2021, on par with Spain at 20%.
- The June Consensus Indicator showed that three of the five subindicators registered a decline this quarter. Investment liquidity subindicator saw the most pronounced drop, falling from 63.2 in March to 47.4 in June. The sentiment is evident in the European transaction volumes, standing at a low €38.9 billion in Q1 2025.
Download the Market Insights June 2025 report, the Consensus Indicator and the Market Insights Infographics Q1 2025.
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Market Insights
Published on 17 Jun 2025
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.