Market Size of Europe REIT Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | > 5.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe REITs Market Analysis
The Europe REIT Industry is expected to register a CAGR of greater than 5.70% during the forecast period(2024-2029).
Real Estate Investment Trusts (REITs) are companies that operate, own, develop, and manage assets of real estate. This enables them to obtain returns from capital appreciation and rental income of the real estate properties. REITs are beneficial for large institutional investors as well as common citizens as a method of long-term investments. REITs offer an opportunity for investors to invest in stable and highly competitive assets. In addition, investments in REITs provide benefits such as liquidity, diversification, more attainable access, and transparency, over direct property investment, which can provide lucrative opportunities for a wider class of investors.
Currently, as per the European Public Real Estate Association, fourteen European nations have introduced REIT legislation in their administration. Further, the European REIT sector is highly lucrative and has displayed a growth of more than 500% from 2008 to 2023. The growth is expected to continue in the near future with the risen focus on the development of REITs in the region. Further, the European Public Real Estate Association (EPRA), as a partner of the Real Estate Equity Securitization Alliance (REESA), plays a key role in the continued growth of the REIT approach to real estate investment across the region.
The COVID-19 pandemic adversely affected the residential and commercial real estate industry in Europe. According to the European Central Bank, the restrictions on movement, voluntary social distancing regulations, and containment measures imposed by the local governments resulted in causing a decline of 3.1% in the third quarter of 2020 compared to the level at year end 2019, on the Euro area housing investment sector. However, the housing prices showed resilience by increasing in annual terms by approximately 6% in the fourth quarter of 2020 and the first quarter of 2021. This led to a recovery in the housing investment sector in the same period. This influenced the European REIT market which displayed a negative growth during 2020. However, the market mainly recovered to pre-pandemic levels in 2021 and 2022.
