Germany and France play catch up as the correction in European non-listed real estate performance continues

The correction in European non-listed real estate performance continues once more this quarter as returns hit -0.47% on a fund level and -0.83% on an asset level in Q2 2023. This is the fourth consecutive quarter of negative performance for European real estate, as some European markets have been slower to correct and no recovery in transactional activity is in sight.

Key highlights:

• UK is leading the correction in Europe with a total return of 0.08%. It is UK’s first positive performance since Q2 2022, and the only positive result of all main geographies. 

• Continental Europe is slower to correct, Germany and France registered weaker Q2 performances in comparison to Q1, at -1.84% and -1.63%, respectively 

• Across the main sectors, retail performance remains in the positive territory at 1.00%, but witnesses more bifurcation within its subsectors.  

• The residential segment maintains positive net sentiment among survey respondents, while its performance differs across market segments.  

• While on the outset the direction of travel is still negative, the broader economic picture reveals some positive signs as inflation continues to decline, albeit projected to remain at notably elevated levels throughout 2023. 

Download the Market Insights September 2023 report and the INREV Sentiment and Valuation Survey Q2 2023 Infographics below or read the press release.