Latest Market Insights show positive progress for European non-listed real estate

The latest INREV Market Insights indicates a growing sense of optimism for European real estate. The December Consensus Indicator rose to 57.8, a fourth consecutive quarterly improvement. The Q3 2024 INREV Fund Index posted a total return of 0.59%, with capital growth turning negative to -0.16% in Q3, after only one quarter of positive results. The results for the Asset Level Index were also positive, with an overall return of 1.65% driven by a positive capital growth of 0.58%. That said, downside risks remain, and a slowing economy and a bifurcation of the letting market are of particular concern.

Key highlights:

• With a headline reading of 57.8, the latest INREV Consensus  Indicator marks the highest reading since its inception in March 2023.
• For the first time, three of the five subindicators surpassed the 60 mark. At 63.3, the investment liquidity subindicator maintained the lead for the second consecutive quarter. December also marks the first time the availability of financing has improved across the full spectrum of risk strategies.
• Positive investment sentiment is reported for most regions, with Spain in the lead, pushing the UK into fourth in top investment destinations. Italy and the Nordics continued their ascension with 16% this December, while Germany continues to trail behind at 5%.
• Residential and industrial/logistics assets achieved their strongest performance in nine quarters and accounted for the lion’s share of return improvements across most European markets.
• Retail sentiment has surged, with 27% of respondents favouring increased exposure—the highest since the survey began in December 2020.

In line with INREV's mission to improve transparency, accessibility, and professionalism of the non-listed real estate investment industry, the Market Insights papers have now been made publicly available to the wider industry. For more information, read our press release or download the Market Insights December 2024 report, the Consensus Indicator and the Market Insights Infographics Q3 2024.