European Reits Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 135.60 Billion |
| Market Size (2029) | USD 194.10 Billion |
| CAGR (2024 - 2029) | 7.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
European Reits Market Analysis
The Europe REIT Industry is expected to grow from USD 135.60 billion in 2024 to USD 194.10 billion by 2029, at a CAGR of 7.40% during the forecast period (2024-2029).
Real estate investment trusts (REITs) are the companies that are involved in the operation, ownership, development, and management of real estate assets. This involvement allows them to generate returns through both capital appreciation and rental income. REITs serve as a valuable long-term investment avenue, benefiting not only large institutional investors but also everyday individuals. They present an opportunity to invest in stable and competitive assets. Moreover, REITs offer advantages over direct property investments, including liquidity, diversification, more accessible access, and transparency, making them appealing to a broader range of investors.
As reported by the European Public Real Estate Association (EPRA), fourteen countries across Europe have adopted REIT legislation. The European REITs market is currently thriving and is poised for continued growth, with a heightened focus on its development. EPRA, in collaboration with the Real Estate Equity Securitization Alliance (REESA), is instrumental in promoting the REIT investment model across Europe.
European Reits Market Trends
The United Kingdom Leads the REITs Market in Europe
The United Kingdom leads the REITs market in Europe. It was one of the first countries in Europe to introduce REIT legislation in 2007, following the success of the REIT model in the United States. The UK REITs market is well-established and mature, with a diverse range of REITs operating across various industries, including commercial, residential, and healthcare real estate.
The REIT regime in the country offers several advantages, including exemption from corporate tax on qualifying rental income and capital gains from qualifying assets, making it an attractive option for real estate investors. The UK REITs market has also been instrumental in promoting transparency and liquidity in the real estate sector, providing investors with a more accessible and efficient way to invest in real estate than direct property ownership.
Impact of Real Estate Investments on REITs in Europe
Residential real estate has maintained more income stability than its commercial counterpart. In addition, the growing integration of new themes, such as environment, sustainability, and governance (ESG), and the perceived and recorded increased retail participation post-COVID-19 are expected to help REITs in Europe gain more attraction by creating a social impact and financial gains. Additionally, investments in sectors with shorter lease durations have been more prone to rent resets, thus affecting the REIT capital gains. However, longer inflation-linked rental contracts provide strong resilience to recessions, offering a steady income source with high growth potential during uncertain periods.
Real estate investment significantly affects REITs in Europe, influencing their performance, growth, and strategies. Key impacts include changes in property values, rental rates, and occupancy levels, directly affecting the financial performance of REITs. Additionally, investment trends impact the acquisition and disposition strategies and the overall valuation of REIT portfolios. Changes in regulations related to real estate ownership, taxation, and REIT structures can also impact the operational and financial aspects of REITs in Europe.
European Reits Industry Overview
The European REITs market is semi-consolidated, with the presence of many players. Companies focus on sustainability by improving energy efficiency and obtaining green building certifications to attract environmentally conscious investors and tenants. They also expand their portfolios through acquisitions and enhance returns by selling underperforming assets. Additionally, they form partnerships or joint ventures to pursue larger projects and diversify risk.
The key players in the market include Land Securities Group, Derwent London PLC, Unite Group, Merlin Properties Socimi SA, and Segro REIT PLC.
European Reits Market Leaders
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Segro REIT Plc
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Land Securities Group
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Derwent London plc
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Unite Group
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Merlin Properties Socimi SA
*Disclaimer: Major Players sorted in no particular order
European Reits Market News
- September 2024: Landsec's subsidiary, Land Securities Capital Markets PLC, successfully launched and priced a EUR 350 million (USD 370 million) Green Bond. With a 10-year maturity, this bond offers a coupon rate of 4.625%, translating to a spread of 97 basis points over the reference gilt rate, pending final legal documentation. This bond bolsters Landsec's financial standing and pushes its weighted-average debt maturity to 9.8 years. Proceeds from the bond will partially repay the drawn portion of the company's revolving credit facility, leading to immediate interest cost savings.
- September 2024: SEGRO PLC priced a senior unsecured bond issue at EUR 500 million (USD 530 million). The eight-year bond was set at 123 basis points above euro mid-swaps, featuring an annual coupon rate of 3.5%. At its peak, the bond issuance saw subscriptions exceeding six times the amount. The primary aim for the proceeds is to refinance current debts, particularly targeting bank loans that are due to mature in early 2026.
Europe REIT Industry Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Surge in Demand for Real Estate Investments
4.2.2 Rising Demand for Both Commercial and Residential Properties
4.3 Market Restraints
4.3.1 Responsive to Fluctuations in Interest Rates
4.3.2 Currency Exchange Rate Fluctuations
4.4 Market Opportunities
4.4.1 Europe Sees Surge in Infrastructure Projects
4.4.2 Embracing Technology and Innovation in Real Estate
4.5 Porter Five Forces
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Regulatory Environment
4.7 Insights on Returns and Dividends - Key Performance Indicators for REITs
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector of Exposure
5.1.1 Retail REITs
5.1.2 Industrial REITs
5.1.3 Office REITs
5.1.4 Residential REITs
5.1.5 Diversified REITs
5.1.6 Other Sector Specific REITs
5.2 By Country
5.2.1 United Kingdom
5.2.2 France
5.2.3 Belgium
5.2.4 Netherlands
5.2.5 Spain
5.2.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Market Competition Overview (Market Concentration And M&A Deals)
6.2 Company Profiles
6.2.1 Land Securities Group
6.2.2 Unite Group
6.2.3 Segro REIT PLC
6.2.4 Merlin Properties Socimi SA
6.2.5 EuroCommercial Ppty
6.2.6 Unibail Rodamco Westfield
6.2.7 Primary Health Properties PLC
6.2.8 Shaftesbury PLC
6.2.9 Derwent London PLC*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
European Reits Industry Segmentation
A real estate investment trust is a company that owns and, in most cases, operates income-producing real estate.
The European REITs market is segmented by sector of exposure (retail, industrial, office, residential, diversified, and other sectors of exposure) and country (the United Kingdom, France, Belgium, the Netherlands, Spain, and Rest of Europe). The report offers market sizes and forecasts in terms of 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 |
Europe REIT Industry Market Research Faqs
How big is the Europe REIT Industry?
The Europe REIT Industry size is expected to reach USD 135.60 billion in 2024 and grow at a CAGR of 7.40% to reach USD 194.10 billion by 2029.
What is the current Europe REIT Industry size?
In 2024, the Europe REIT Industry size is expected to reach USD 135.60 billion.
Who are the key players in Europe REIT Industry?
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 Industry.
What years does this Europe REIT Industry cover, and what was the market size in 2023?
In 2023, the Europe REIT Industry size was estimated at USD 125.57 billion. The report covers the Europe REIT Industry historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe REIT Industry size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe REIT Industry Industry Report
Statistics for the 2024 Europe REIT Industry market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Europe REIT Industry analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Europe REIT Industry Report Snapshots
