Market Size of Europe REIT Industry
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 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 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.
Europe REIT Industry Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Surge in Demand for Real Estate Investments
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1.2.2 Rising Demand for Both Commercial and Residential Properties
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1.3 Market Restraints
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1.3.1 Responsive to Fluctuations in Interest Rates
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1.3.2 Currency Exchange Rate Fluctuations
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1.4 Market Opportunities
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1.4.1 Europe Sees Surge in Infrastructure Projects
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1.4.2 Embracing Technology and Innovation in Real Estate
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1.5 Porter Five Forces
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Insights on Regulatory Environment
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1.7 Insights on Returns and Dividends - Key Performance Indicators for REITs
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Sector of Exposure
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2.1.1 Retail REITs
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2.1.2 Industrial REITs
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2.1.3 Office REITs
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2.1.4 Residential REITs
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2.1.5 Diversified REITs
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2.1.6 Other Sector Specific REITs
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2.2 By Country
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2.2.1 United Kingdom
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2.2.2 France
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2.2.3 Belgium
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2.2.4 Netherlands
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2.2.5 Spain
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2.2.6 Rest of Europe
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Europe REIT Industry Market Size 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.