New INREV short paper on the proximity of European non-listed real estate recovery

The European real estate market has experienced one of the sharpest corrections in history, which prompted the INREV Research Committee to hold a debate on the timing of expected European real estate market recovery and the likely drivers and opportunities in the next cycle.

Key highlights:

• The INREV Research Committee agrees that the European real estate correction that started in H2 2022 is coming to an end. The vast majority believe that the recovery will take place sometime in 2025, most likely in the first half of the year
• The next cycle marks the return to the alpha market. It is expected to be driven by income and operational efficiency, rather than yield compression and accretive leverage. Higher structural vacancy and bifurcation will be the two key features of this new normal.
• While there are clear challenges and risks, they are not evenly spread across the European real estate market.

Download the paper, ‘European non-listed real estate: alpha driven recovery in 2025’ below.