Property funds: global assets exceed 5.1 trillion

At the European level, the ranking of the leading REITs by market capitalisation as at 31 December 2025 shows a strong concentration in France and the United Kingdom, which account for nine of the top ten positions. France remains the leading market in terms of the number of operators in the top ten, with four companies, whilst the United Kingdom has five. Spain retains a prominent role thanks to the presence of Merlin Properties, which consolidates its position amongst the continent’s largest listed property companies.

The report also highlights the growing importance of logistics and retail, represented by operators such as Segro and Klépierre, which complement the traditional players active in the office sector and in diversified property portfolios. The ten leading listed European REITs have a combined market capitalisation of around €71 billion and manage a property portfolio worth over €155 billion. Despite the recovery seen in 2025, thanks to the stabilisation of interest rates and the return of investor confidence, stock market valuations continue to show a significant discount compared to asset values.

It is not just REITs. The expansion extends more broadly to the entire property fund sector. In 2025, the total assets of listed and unlisted funds and REITs worldwide reached 5.11 trillion, representing a 6.2% increase on the previous year. In Europe, the expansionary phase has slowed, although the number of funds and their assets have grown. In total, there are 2,478 funds and 283 REITs in operation, with total assets of €1.73 trillion (+4.9%). The share of European vehicles in global assets under management has decreased in percentage terms to around 34%, but has grown in volume, confirming the positive trend of recent years. European REITs account for 33.5% (€580 billion) of total assets under management in Europe, whilst the market continues to be driven by unlisted funds, which account for over 64% and represent around a quarter of global assets.

Italian property funds continue to improve their performance and now account for over 13% of active funds in Europe. As at 31 December 2025, the total Net Asset Value (NAV) stood at €125.7 billion, up 3.5% on the previous year. The real estate assets held directly by the 700 operational funds rose to €144.5 billion, representing 4% year-on-year growth. The market remains highly concentrated: the leading asset management companies manage 97% of active funds, with an average of over €2.3 billion per company. The top twenty, meanwhile, exceed €7.2 billion in average assets, consolidating their leadership in the domestic industry.

A significant development concerns the composition of property portfolios. As Francesca Zirnstein, Managing Director of Scenari Immobiliari, pointed out, ‘the Italian market is gradually becoming more diversified. The residential segment has reached 9.7% of the total, whilst the hotel and hospitality sector has risen to 7%’. Offices remain the main asset class, accounting for 56.5% of the total portfolio. However, there is growing interest in higher-quality properties and in development strategies focused primarily on the most attractive city centres.

For 2026, forecasts by Scenari Immobiliari and Studio Casadei point to a further strengthening of the sector: NAV is expected to rise by 5%, whilst the real estate portfolio is forecast to grow by 5.5%, accompanied by an increase in the number of funds to 720. The sector’s debt exposure remains stable at €62 billion, corresponding to 43% of assets under management. Average profitability, measured by ROE, has, however, fallen slightly to 1.7%. According to Zirnstein, a climate of cautious optimism will prevail. “Expectations point towards a further increase in assets under management and a gradual diversification of portfolios, in line with the changes currently taking place in the property market.”