Real estate equities and REIT prices stabilize – Aventos

The latest Aventos Listed Real Estate Report indicates that real estate equities and REIT prices have largely stabilized over the past six months (up to September 30), following a period of high volatility. 

Karim Rochdi

However, they have not kept pace with the broader stock market, which has reached record highs in some areas. Eurozone interest rates appear stable, but the future remains uncertain due to a recent U.S. prime rate reduction and ongoing political pressures, impacting currency exchange and listed real estate performance.
Transaction activity in the listed real estate segment has gradually increased, albeit remaining subdued. Notable M&A deals between April and September 2025 included the €5.6 bn takeover of Belgian nursing home company Cofinimmo by Aedifica, the €3.5 bn acquisition of British healthcare REIT Assura by Primary Health Properties, and a €4.9 bn bid for U.S. office REIT Paramount Group by Rithm Capital. 
Logistics segments on both continents are seeing a decline from their previous high valuations. Conversely, traditional retail and office sectors are emerging as relative winners in momentum. The U.S. data centre sector maintains a unique strong position due to insatiable demand, while the hotel segment continues to show a special effect from its 2020-2021 revenue slump, which temporarily pushed implied cap rates near zero.
Karim Rochdi, founder and partner of Aventos, commented: “Real estate stocks are currently unable to keep pace with the technology-driven boom, particularly on the S&P 500 Index. In comparison to the elevated valuations of the broader stock market, the real estate sector can currently be classed as moderately priced based on Implied Cap Rates and NAV spreads. A post-pandemic consolidation effect is evident across the various real estate segments: the temporary overvaluations in specific segments (logistics, towers, self-storage, and residential real estate in the US) are giving way to a more balanced alignment with the overall market. Despite the political and economic turbulence in the U.S., general disparities in valuations based on net asset value between North America and Europe persist, and are still to the detriment of Europe”.