Real estate secondaries market matures – CBRE IM

New research from CBRE IM indicates that the global real estate secondaries market is no longer a niche for quick liquidity but has matured into a strategic tool for managing real estate portfolios.

Kilian Toms

Their latest report, "The Broadening of Secondary Market Liquidity," is their third study on the sector, revealing that secondaries are increasingly used to recapitalise ownership, maintain control of valuable assets, and execute large-scale transactions, even when traditional exit markets are unstable.

Global real estate secondaries transactions reached $25.1 bn (€23.4 bn) in 2025, up from $24.3 bn (€22.7 bn) in 2024. Significantly, this growth is driven by deliberate choices rather than urgent needs, reflecting a more sophisticated and institutionalised market.

GP-led transactions accounted for 64% of total volume in 2025, with continuation vehicles and recapitalisations used strategically to revise business plans, retain assets, and attract additional capital.

The LP-led segment increased by 15% year-on-year, showing a move towards proactive portfolio rebalancing and capital reallocation instead of forced sales.

Secondaries are now being executed at a platform scale, from partial stake sales to major continuation vehicles, indicating the market's comfort with large and complex deals.

Industrial assets dominated activity, while living sectors expanded due to stable income and demographic demand. Retail investment was more selective, focusing on high-quality, experience-driven properties.

The U.S. remains the primary market for secondary activity, with Continental Europe also showing strong growth in core markets and living platforms.

CBRE IM anticipates continued high activity in the secondary market as investors deal with longer holding periods, varied valuations, and capital allocation challenges, positioning secondaries as a vital component of global private real estate portfolios.

Kilian Toms, fund manager, Real Estate Partners II, CBRE IM, said: “What we are seeing now is a market that has matured into a reliable, institutional liquidity mechanism. Secondaries are no longer about solving one‑off liquidity challenges; they are being deployed deliberately to manage portfolios, preserve ownership of high‑quality assets and execute transactions at scale. As this market continues to broaden, the focus is shifting from whether secondaries should be used to how they can be deployed most effectively alongside primary market strategies.”