INREV Survey: Global real estate AUM rises, signalling market recovery

The latest Fund Manager Survey from INREV, Europe's leading body for non-listed real estate investors, reveals that global real estate AUM increased by 5.7% to €3.8 tn at year-end 2025, up from €3.6 tn the previous year.

Irina Pylypchuk

This marks the first rise since 2021, ending a three-year contraction and suggesting a market on the path to recovery, driven by stabilising interest rates, improving property valuations, and renewed investor confidence.

Global real estate AUM reached €3.8 tn at year-end 2025, a 5.7% increase, making it the third-highest value recorded since the survey's inception.

Smaller "third quartile" managers significantly increased their share of global AUM from 12% to 16%, indicating broader consolidation beyond just the largest firms. Merger and acquisition activity continued to be higher than anticipated, with 15% of managers involved in mergers and 11% completing acquisitions in 2025.

Global dry powder (undisbursed capital) fell to a record low of €179 bn, the lowest level since tracking began in 2020. However, while larger managers actively deployed capital, third-quartile managers nearly doubled their dry powder from €17 bn to €30 bn, reflecting new commitments flowing into mid-scale strategies.

Allocations to core (lower-risk, income-producing) strategies rose significantly to 72% globally, up from 63% in 2024. This trend was even more pronounced in Europe (83%) and North America (87%), indicating a return to confidence and improved income fundamentals, rather than a retreat from risk. This shift in Europe is partly due to increased capital into residential and living strategies, often classified as core.

Operational Platforms: 40% of European and 43% of North American managers are now acquiring operational platforms as part of their investment strategy.

The recovery signifies that the market has largely moved beyond the repricing cycle. In terms of top fund managers, Blackstone maintained its leading global position with €480.8 bn in AUM, followed by Brookfield Asset Management and Prologis. Regionally, UBS Asset Management became the largest manager in Europe, partly due to M&A activity, and CapitaLand Investment took the top spot in the Asia Pacific. Blackstone also retained its first-place position in North America.

Iryna Pylypchuk, director of Research and Market Information at INREV, said: “For the first time in three years, global real estate AUM has grown – and the signals are more encouraging than the number itself. The return to core is the clearest indication that investor confidence is rebuilding. When managers and investors move back toward core in the volumes we are seeing – particularly in Europe and North America – it reflects genuine conviction in the underlying fundamentals of the asset class.”