News / Insights

In 2025, capital raised in the private real estate sector remained broadly stable globally, reaching approximately €117 billion, in line with 2023 and 2024. According to INREV’s analysis, over 80% of managers raised capital, a figure that matches the survey’s all-time high, despite challenging market conditions, which 53% of operators cited as the main obstacle. North America remains the primary destination for capital inflows at €43 billion (+16% year-over-year), while the Asia-Pacific region saw a significant decline to €22 billion (from €36 billion).

As for Europe, a partial recovery is observed: inflows grew by 20% year-over-year, rising from €29 billion to €35 billion, though they remain below pre-2022 levels (between €50 billion and €70 billion annually). In terms of capital sources, North American investors are once again dominant, contributing approximately 40% of global fundraising, while pension funds have strengthened their role, reaching 39% of the total—an increase from the low of 29% recorded in 2023.

In terms of investment vehicles, unlisted funds (in “commingled” form, i.e., funds that pool capital from multiple investors into a single managed vehicle) and private REITs remain the preferred structures globally. In Europe, unlisted funds account for 56% of capital raised, a sharp rebound from 29% in 2023, signaling renewed interest in pooled structures. The operating environment remains characterized by a high level of capital raised but not yet invested (“dry powder,” accounting for 70% of the total), reflecting low transaction activity and the accumulation of resources awaiting allocation.