INREV Market Insights

Weakened sentiment towards European real estate as economic and political challenges hit home

• Latest Consensus Indicator dropped to 56.7 — the first decline since September 2023.
• All five sub-indicators declined in March. Investment liquidity (63.2) and financing (61.3) remain above 60, economic dropped to 44.0, the weakest reading this quarter.
• The Q4 2024 INREV Quarterly Fund Index posted a total return of 1.21%, the strongest performance since Q2 2022.
• On a one year annualised basis, all key assets delivered positive returns in 2024. However, investors’ assessment of risk is dramatically higher, up by 30%.
• Southern European markets continue to gain momentum, with Spain at record-high net positive sentiment (39%), followed by Italy (24%). France and Germany however, kept their two year average net sentiment of only 3%.
• Residential retains the top spot for positive sentiment, while retail holds momentum. Industrial/logistics has moderated to 12%, offices stand at 0%, an improvement of 8% since December 2024.