A further decline in sentiment, while performance holds firm

The latest edition of the INREV Market Insights reflects, once again, a mixed picture for European real estate, as identified earlier in the March 2026 publication. The Q1 2026 INREV Quarterly Fund Index posted a total return of 1.30%, up from 1.24% a quarter earlier, a third consecutive quarter of improvement. The INREV European Quarterly Asset Level Index returned 1.67 % at the start of the year.

The INREV Consensus Indicator fell from 54.7 in March to 41.0 in June. This is the lowest level since the monitoring of the market consensus began in March 2023. Moreover, all underlying sub-indicators declined significantly, with three out of the five now in contraction territory.

Key highlights:  

• The June INREV Consensus Indicator recorded a headline reading of 41.0, falling 13.8 points from 54.7 in March 2026. This represents the first contraction since December 2023 and reflects a widespread weakening in sentiment. The economic subindicator recorded the sharpest deterioration, falling to a historic low of 24.0 in June.
• As for the performance, the Netherlands emerged as the strongest, delivering the Q1 asset level return of 2.90%, while Spain and the Nordics followed, with 2.20% and 2.01%, respectively. The UK delivered 1.05%, while France and Germany lagged behind, albeit remaining in positive territory.
• The residential sector recorded the strongest performance in Q1 2026 with a total return of 2.85%, including a capital growth of 2.04%. Both measures represent the sector’s highest quarterly outcome since Q3 2024. Retail assets followed with a total return of 1.47%. The sector recorded the highest net sentiment this June.

Download the Market Insights June 2026 report, the Consensus Indicator and the Market Insights Infographics June 2026.