Europe REIT Industry Market Size (2024 - 2029)

The European REITs market is poised for growth, driven by the increasing adoption of REIT legislation across multiple nations in the region. Despite the challenges posed by the COVID-19 pandemic, which initially impacted the market negatively, the sector has shown resilience and a return to pre-pandemic levels. The market's expansion is supported by the benefits REITs offer, such as liquidity and diversification, making them an attractive investment option for a broad range of investors. The continued focus on developing REITs in Europe, alongside the efforts of organizations like the European Public Real Estate Association, underscores the potential for sustained growth in market size over the forecast period.

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Market Size of Europe REIT Industry

Europe REIT Industry Summary
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

Europe REIT Industry Major Players

*Disclaimer: Major Players sorted in no particular order

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.

Europe REITs Industry Segmentation

A real estate investment trust is a company that owns, and in most cases operates, income-producing real estate. An understanding of the Europe REIT industry, regulatory environment, REITs, and their business models, along with detailed market segmentation, product types, revenues and dividends, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The European Real Estate Investment Trust (REIT) Market is segmented based on the sector of exposure (Retail, Industrial, Office, Residential, Diversified, and Others) and by Country (United Kingdom, France, Belgium, Netherlands, Spain, and Rest of Europe). The report offers market size and forecasts for the Europe REIT Industry in value (USD) for all the above segments.

By Sector of Exposure
Retail REITs
Industrial REITs
Office REITs
Residential REITs
Diversified REITs
Other Sector Specific REITs
By Country
United Kingdom
France
Belgium
Netherlands
Spain
Rest of Europe
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Europe REIT Industry Size Summary

The European REITs market is poised for significant growth, driven by the increasing adoption of Real Estate Investment Trusts across the region. REITs, which manage and develop real estate assets to generate returns through capital appreciation and rental income, offer attractive investment opportunities due to their liquidity, diversification, and transparency. The market has seen substantial growth over the years, with several European countries implementing REIT legislation, supported by organizations like the European Public Real Estate Association. Despite challenges posed by the COVID-19 pandemic and geopolitical tensions, the market has shown resilience and is expected to continue its upward trajectory, with a focus on integrating environmental, sustainability, and governance themes to attract a broader range of investors.

The UK stands as the largest REIT market in Europe, significantly influencing the regional market's growth. UK REITs benefit from tax exemptions on property rental income, although recent changes in tax rates on non-rental business income may impact their attractiveness for non-UK property investments. The European REIT market is also witnessing a shift towards residential real estate, which has shown more income stability compared to commercial properties. Major players in the market, such as Land Securities Group and Derwent London plc, are actively expanding their portfolios and seeking to attract retail investors by offering diversified and affordable investment opportunities. As the market navigates economic uncertainties, longer inflation-linked rental contracts are expected to provide resilience and steady income, further enhancing the appeal of European REITs.

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Europe REIT Industry Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter Five Forces

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights on Regulatory Environment

    6. 1.6 Insights on Returns And Dividends - Key Performance Indicators for REITs

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector of Exposure

      1. 2.1.1 Retail REITs

      2. 2.1.2 Industrial REITs

      3. 2.1.3 Office REITs

      4. 2.1.4 Residential REITs

      5. 2.1.5 Diversified REITs

      6. 2.1.6 Other Sector Specific REITs

    2. 2.2 By Country

      1. 2.2.1 United Kingdom

      2. 2.2.2 France

      3. 2.2.3 Belgium

      4. 2.2.4 Netherlands

      5. 2.2.5 Spain

      6. 2.2.6 Rest of Europe

Europe REIT Industry Market Size FAQs

The Europe REIT Market is projected to register a CAGR of greater than 5.70% during the forecast period (2024-2029)

Segro REIT Plc, Land Securities Group, Derwent London plc, Unite Group and Merlin Properties Socimi SA are the major companies operating in the Europe REIT Market.

Europe REIT Industry Report Snapshots

European REITs Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)