Market Commentary by INTREAL Luxembourg: European Real Estate AIF Continued to Grow in Number and Net Fund Assets during 2024 despite Cash Outflow

30. Apr 2025

The net fund assets of all regulated European real estate funds (AIF) increased by c. 8.9 billion EUR during the fourth quarter 2024, bringing the total up to 1,034.9 billion EUR by the end of the year. This is proven by the latest figures that the European Fund and Asset Management Association (EFAMA) released. Compared to the 2023 year-end total of 999.4 billion EUR, the total net fund assets grew by c. 35.5 billion EUR or about 3.6 percent over the course of 2024. In a parallel development, the number of European real estate AIF increased as well. Up from 3,949 funds registered by the end of 2023, the EFAMA statistics quote a new total of 4,032 real estate AIF by the end of 2024.

“As far as the fourth quarter of 2024 goes, the developments of the previous quarters continued along the same lines. Both the total number of funds and the total net fund assets increased. This reflects, on the one hand, a further stabilisation of the price levels on European real estate markets, which had a positive impact on the property performance and which evidently overcompensated for the net funds outflow. On the other hand, it demonstrates that investors continue to be interested in launching new real estate AIF,” said Rudolf Kömen, Conducting Officer of INTREAL Luxembourg.

A closer look at the cash inflows and outflows reveals, once again, a heterogeneous picture. By far the largest cash outflows, adding up to nearly 4.5 billion EUR, were reported for Dutch real estate AIF. Other countries with a negative balance were the United Kingdom (-1.7 billion EUR) and Austria (-1.6 billion EUR), trailed at some distance by Germany (-616 million EUR) and Finland (-411 million EUR). The highest net cash inflows over the course of 2025, by contrast, were registered in Ireland (+1.2 billion EUR), Switzerland (+949 million EUR), Türkiye (+883 million EUR) and Luxembourg (+623 million EUR).

Rudolf Kömen commented: “Having seen few launches of new investment funds last year overall, we expect the situation to improve slightly if noticeably in 2025. Especially institutional investors are likely to resume investing higher amounts in real estate AIF this year. That is suggested by the talks we are engaged in at this time, and we are confident that they will cause additional new funds to be launched in the coming months.”

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