Europe REIT Industry - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The Europe REIT Industry is expected to grow from USD 145.63 billion in 2025 to USD 208.11 billion by 2030, at a CAGR of 7.4% during the forecast period (2025-2030).

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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support