Given the importance of the topic, INREV and EPRA have released a publicly available snapshot of the second paper in the One Real Estate Universe series. It offers a concise overview of the recent research into how listed and non-listed real estate work together within institutional portfolios.
The snapshot highlights several key findings:
- Listed and non-listed real estate delivered similar long-term returns, but with very different risk profiles. The paper explores how the two routes can be assessed on a common basis, compared across risk and return metrics, and incorporated into multi-asset portfolios.
- Listed markets lead non-listed valuations by around two quarters, while the volatility gap narrows significantly when non-listed returns are desmoothed.
- Risk-based portfolio construction supports a 5%-20% allocation to real estate. Non-listed real estate provides diversification benefits and listed real estate offers liquidity, price discovery, flexibility, and access to specialised property sectors.
- Non-listed real estate provides a low and stable correlation with other asset classes, helping to reduce overall portfolio risk.
- Listed real estate can serve multiple functions, acting as a liquid tactical instrument, a strategic holding and a source of diversification within a real estate allocation.
The research reinforces the paper’s central conclusion: listed and non-listed real estate should not be viewed as competing investment options, but as complementary components of a broader real estate allocation.
Read the snapshot below or explore the full series of joint papers on One Real Estate Universe.
One Real Estate Universe
Published on 02 Sep 2026