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Steady growth of European private real estate debt market continues

Over €25 billion of private non-listed real estate debt is expected to mature in the next 10 years.

Key highlights:

  • The European non-listed real estate market has continued growing, reaching a total target equity of €62.9 billion spread across 117 vehicles. This represents the largest sample ever recorded in the INREV Debt Vehicles Universe.
  • Around 54% of the €62.9 billion total target equity is focused on closed end vehicles with a senior strategy. The senior strategy also remains the preferred debt tranche regardless of the loan generation strategy. However, there is a clear difference in the loan strategy by vintage year. Notably, recent fund launches focus on senior debt strategies to minimise the risk, given the risk-reward is already very attractive.
  • Over €25 billion in debt is expected to be liquidated in the next 10 years, with more than 50% coming to the market in the next five. This will create access opportunities for new investors, with expected returns well above those achieved in previous years, but the assessment of risk will also be more complex.

Contact research@inrev.org if you have a debt fund and would like to be part of the Universe.

View detailed analysis via the INREV Debt Vehicles Universe or download the snapshot and PDF report below.