The latest Market Insights report from INREV reveals a drop in sentiment toward the European real estate market for a second consecutive quarter, with the Consensus Indicator for June declining to 52.2, down from 56.7. This comes despite the first quarter 2025 Quarterly Fund Index posting a positive total return of 1.04 percent and capital growth increasing to 0.56 percent, its strongest showing since second quarter 2022.
Overall, the research points to a disconnect between performance and sentiment, reflecting that market participants are still proceeding with caution.
June 2025 marks the first time since March 2024 that a total of three subindicators – new development, investment liquidity and economic – all fell below 50, pointing to contraction and highlighting growing uncertainty surrounding the trajectory of market recovery.
After several quarters of negative asset-level returns, the office sector posted positive returns of 1.11 percent in first quarte
