The latest INREV Market Insights reveal downward pressure on real estate performance

Mounting risks and weaker near term performance expectations signal a shift in sentiment for European real estate. 

Key highlights include: 

• The Q2 Pan-European non-listed real estate returns reached 2.69% on an asset level and 2.65% on a fund level. This is the second consecutive quarterly decline since the recent peak in Q4 2021 and reveals continuing downward pressure on European real estate performance. 
• The slowdown in performance was evident across nearly all geographies, with exception of France and Italy. According to the Asset Level Index, offices was the only sector to report a quarter-on-quarter increase in performance. Despite a 206 bps quarter-on-quarter decline, industrial/logistics assets achieved the highest sectoral return of 4.18%. 
• The INREV September 2022 Sentiment Survey reveals a clear turning point in investor and investment managers’ assessment of risk as well as weaker near term performance expectations. Three quarters of survey respondents expect further slowdown in the short-term European real estate performance and 57% are less confident about increasing weight to European real estate. 

Download the Market Insights September 2022 report and the INREV Sentiment and Valuation Survey Q2 2022 Infographics below.