Principal’s Shone sees renewed momentum in European real estate

Rachel Shone, managing director of EMEA Real Estate at Principal Asset Management, offered positive reflections on Expo Real 2025.

Expo Real

She noted a "pleasant surprise" at the event, observing a return of momentum in transaction volumes, even if not yet at historical highs. Investor interest was particularly encouraging.
A key theme in discussions was geographic allocation, with a noticeable, though not permanent, shift away from US investments. The prevailing sentiment was that Europe is currently the most attractive region for new capital deployment.
Regarding sector preferences, while traditional "beds and sheds" (residential and logistics) remain popular, there's growing interest in more specialized alternative assets, with data centres cited as a prime example.
"Ultimately, we are finding that specific strategies with a concrete thesis can capitalize on structural growth trends in areas where there's an inherent supply constraint. If you can articulate those well, you have a clear execution path”, she pointed out.
In summary, Expo Real indicated increasing investor traction and a significantly improved market sentiment compared to the previous year, though it's not yet a boom market. Shone expressed hope that liquidity issues would ease as they move into 2026, leading to a resurgence in market activity.