Nearly 25 percent of European funds have experienced secondary trading, according to recent research published by INREV.
INREV’s Secondary Trading and Liquidity Study reveals secondary trading in both open- and closed-end funds has become an established part of the overall real estate investment landscape, as opposed to a marginal activity.
The market in secondary trading of units in nonlisted real estate funds was worth around €9 billion ($10 billion) in 2015 INREV finds. Between €2 billion and €4 billion ($2.1 billion and $4.3 billion) of this total is estimated to have been traded in European funds.
The study also identifies a continued upward trajectory for secondary trading, citing the industry rule of thumb that at least 3 percent of capital raised in the primary market will be traded on the secondary market over the next five years. Of the €92.6 billion ($98.6 billion) of new capital that was raised for European nonlis
