One Real Estate Universe
Welcome to the INREV/ EPRA series of joint papers examining the characteristics and evolution of the real estate market from both listed and non-listed perspectives. By bringing together insights from these complementary segments, we offer a comprehensive view of market dynamics and trends across the real estate investment landscape. This includes the One Real Estate Universe and the Real Estate in the Real Economy papers.
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One Real Estate Universe: Combining Listed and Non-Listed Routes in European Institutional Real Estate Portfolios
This joint paper from EPRA and INREV reveals that European listed and non-listed real estate are not two asset classes but two routes into one - institutional-grade European commercial property. Drawing on two decades of data from the index families maintained by EPRA and INREV shows that both routes are best understood as complementary rather than competing. Each has reached institutional scale, both have de-leveraged structurally since the global financial crisis, and each reaches parts of the market the other cannot fully replicate.
Key highlights:
- Combined, the European non-listed and listed real estate universe is now just above the €2.0 trillion threshold.
- Each segment has carved its own distinct path to institutional maturity over the past two decades, and the report examines how their structural differences determine the complementary roles they can play within a broader portfolio.
- Lower leverage is key, confirming a notable structural reset since the global financial crisis.
- At a sector-level portfolios have rotated sharply away from retail and offices since 2012. Residential is now the largest sector for both, while retail has halved.
- At a country-level, Germany has displaced the UK as the largest market exposure in both listed and non-listed.
- The routes to market, however, are both different and complementary.