Global real estate assets under management contract third year in a row

Global real estate assets under management (AUM) dropped to €3.6 tn in 2024, a 2.7% decrease from 2023, marking the third consecutive year of contraction. 

Real estate - Photo by Jason Dent on Unsplash

The Fund Manager Survey 2025, published by ANREV, INREV and NCREIF, attributes this decline to ongoing market uncertainty, weak economic growth, and low capital raising, totalling just €118 bn in 2024 – the second lowest since 2015.
Larger fund managers are increasing their dominance through consolidation and accumulating more capital, widening the gap between them and smaller firms. They now control 83% of total AUM (€3 tn), up from 79% in 2023
While overall AUM fell, the top 10 global managers maintained their €1.9 tn AUM. Available capital (dry powder) also decreased to €195 bn or 7.4% of total AUM (down from 8.0%). 
Pension funds and insurance companies remain the largest investors, accounting for 43% and 19% respectively in 2024.
The average AUM per manager decreased by 17.3% to €32.1 bn in 2024, highlighting the growing disparity between large and small firms. 
Regional top 10 rankings saw significant changes, with new entrants in North America, Europe, and Asia-Pacific, while Blackstone maintained its top 10 position across all regions. In Europe, AXA IM climbed to third place, while newcomers Deka Immobilien and Prologis also joined the top 10.
Despite market volatility, both fund managers and investors are increasingly pursuing higher-risk strategies, shifting from core to opportunistic investments.
Commenting on the results, Iryna Pylypchuk, INREV’s director of Research and Market Information, said: “Industry consolidation is expected to gain momentum, with 11% of respondents undertaking or planning mergers in 2025, and 7% pursuing acquisitions. In the wider picture, the survey results reflect that for the first time in decades, Europe is at the front of the global correction cycle, followed by North America and then Asia Pacific. Surplus savings and the recent agenda to power charge European economy with a focus on growth sectors give an additional impetus. As the US policies focus inward, there is a growing sentiment that if the European economy gets back on track, the Euro has the potential to become a reserve currency in the next 15 years. The market is picking up on this, and it is starting to believe in Europe again.”