The latest INREV Market Insights reveals a mixed picture for European real estate. While market performance shows further signs of improvement, sentiment remains cautious, and in some areas, it is deteriorating.
The latest INREV Consensus Indicator dropped to 56.7 from 57.8 in December 2024 – the first decline since September 2023. All five subindicators declined. Investment liquidity and financing, which demonstrated substantial improvement last year, also declined – though they remain the only two subindicators above the 60 mark. The economic and new development subindicators remain in contraction territory, with the economic subindicator seeing a sharp drop from 47.4 in December to 44.0.
There are rising concerns over subdued economic outlook for most major European economies, but there are exceptions. Off the back of strong economic growth, Southern Europe leads investment sentiment rankings, whil