Institutional property investment in the 11 largest countries monitored by the IPD amounts to €1trn, according to the latest research on European market sizes.
Aart Hordijk of ROZ Real Estate Council and Carl-Ivar Ahlqvist of the University of Maastricht presented the research at the IPD European Investment Conference in Vienna in May. At 11%, Sweden has the highest percentage of total property held by institutions, followed by the UK, at 7%. Spain and Ireland have the lowest level of institutional ownership, at 1% each.
UK institutional holdings represent 57% of the country’s total assets suitable for investment, whereas Sweden’s larger institutional holdings, at 11%, represent 56% of the investment market. In many countries where institutions have a smaller share of total assets, this represents a large chunk of the total investment market; for example, Finnish institutions’ 4% of total stock is 39% of the total suitable for investment. In contrast, the 1% held by Irish and Spanish institutions is just 8% and 9% respectively of the total investment market.
IPD
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Estimated investment market sizes |
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Germany’s investment market is by far the largest in terms of total property value |
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Country |
Total property value €bn |
Total investment market value €bn |
Total property assets as % of GDP |
Property held by institutions €bn |
Institutions’ share of all property, % |
Institutions’ share of investment market, % |
Investment market as % of all property |
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Germany |
7,109 |
819 |
3.37 |
292 |
4 |
36 |
12 |
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UK |
5,054 |
625 |
3.21 |
358 |
7 |
57 |
12 |
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France |
4,864 |
604 |
3.29 |
125 |
3 |
21 |
12 |
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Spain |
2,401** |
273 |
3.19* |
24 |
1 |
9 |
11 |
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The Netherlands |
1,467** |
180 |
3.19* |
65 |
4 |
36 |
12 |
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Norway |
632** |
83 |
3.19* |
20 |
3 |
24 |
13 |
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Denmark |
612 |
76 |
4.37 |
23 |
4 |
30 |
12 |
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Sweden |
552 |
104 |
2.05 |
58 |
11 |
56 |
19 |
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Finland |
464** |
55 |
3.19* |
20 |
5 |
39 |
12 |
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Ireland |
432** |
55 |
3.19* |
5 |
1 |
8 |
13 |
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Portugal |
430** |
45 |
3.19* |
9 |
2 |
21 |
11 |
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Total |
2,921 |
1,000 |
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Source: Hordijk/Ahlqvist *Average ratio based on GDP to total assets of Germany, UK, France, Denmark, Sweden ** Based on ratio of property to GDP multiplied with country’s GDP |
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