The real estate secondary market transaction volume in 2023, declined to $9.8 billion in 2023, down 21 percent from the record $12.4 billion in 2022, according to Ares Secondaries Group.
This has contributed to a greater pent-up need from both Limited Partners (LPs) and General Partners (GPs) to generate liquidity, which Ares believe creates an exciting opportunity for significant growth.
The number of real estate secondary transactions in 2023, however, declined by only 4 percent to 154. This is down from the record high 161 transactions in 2022. While a decline in volume was expected given the market environment, it actually compares favorably to the direct real estate transaction market, which saw volume declines in the range of more than 50 percent globally per MSCI.
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