On June 10–11, London became the focal point of the global investment community as it hosted the landmark PERE Europe Forum 2025. According to real estate expert Avi Itzkovich, the Forum — which has set the tone for private real estate investment for over two decades — gathered more than 200 leading institutional players, fund managers, and developers. The event made one thing clear: the European market has not only weathered macroeconomic turbulence, but is also gearing up for a new phase of growth, where credit strategies, secondaries, and ESG approaches will play a pivotal role.
“The Forum mirrored a market that has gone through several difficult years but is now showing signs of structural renewal. Investors are no longer confined to traditional models — they’re looking for more flexible and tech-driven solutions,” commented Avi Itzkovich.
A New Cycle or a False Dawn? Avi Itzkovich’s Forecast
The central theme of the Forum was a debate around the beginning of a new investment cycle. In his keynote address, Bruce Flatt, CEO of Brookfield Asset Management, emphasized that a market rebound is inevitable — but it demands a shift in mindset: “We can no longer rely on the same growth drivers that worked before the pandemic. Capital structure, debt instruments, ESG — these are now the pillars that define the future.”
Other panel participants echoed this view. Experts from Partners Group, Schroders Capital, and Swiss Life Asset Managers highlighted that elevated interest rates and geopolitical risks are forcing investors to assess risk–return ratios with greater scrutiny. “In today’s environment, simply replicating old models won’t work. What’s needed are projects with clear ESG strategies, high operational efficiency, and financial structures resilient to shocks,” noted one of the discussants.
Avi Itzkovich adds that this shift in focus is a natural response to ongoing instability:
“The market today is no longer about chasing rapid growth at any cost. It’s more about selectivity and hands-on asset management. Success now lies in the ability not just to acquire a property, but to prepare it for the challenges of the next 10–15 years — from energy efficiency to adaptable business models.”
Credit and Secondaries as Emerging Growth Drivers. Commentary by Avi Itzkovich
One of the Forum’s focal points was the rapid rise of the secondaries market — funds dedicated to the resale of private assets. Jeff Giller of StepStone explained that this segment is becoming a kind of “safety valve” for investors, allowing for flexible portfolio management and swift reactions to market fluctuations.
Equally significant was the discussion around the debt instruments market. Participants in the Forum’s Debt Track noted that traditional banks are becoming increasingly cautious when it comes to financing large-scale projects. In their place, real estate funds are stepping in as alternative lenders. “We’re witnessing the emergence of a new class of investors specializing in the provision of private debt for major development and infrastructure projects. This boosts market liquidity and opens up new opportunities,” noted Avi Itzkovich.
ESG and Technology: The New Standard. Avi Itzkovich’s Perspective
Sustainable development and green technologies were recurring themes across virtually every panel. The implementation of ESG standards is no longer optional — it is a fundamental requirement of the times. Forum participants stressed that investors are increasingly drawn to assets with low carbon footprints, cutting-edge energy efficiency systems, and smart management technologies.
“In 2025, ESG is no longer an abstract concept. It’s a set of concrete metrics that directly determine investment viability. If an asset doesn’t meet decarbonization benchmarks, its appeal plummets,” commented Avi Itzkovich.
Particularly strong interest is being shown in data centers and student housing — sectors gaining favor among institutional funds due to their resilience to economic volatility.
Europe as a “Safe Haven.” Avi Itzkovich Explains
Another key message that emerged from the Forum was the growing appeal of the European real estate market in comparison to the United States. Panelists emphasized the stability of regulatory frameworks, the predictability of the tax environment, and the less speculative nature of the market structure.
“Today, Europe is not only a cultural and industrial hub — it has become a kind of ‘safe haven’ for capital. While the U.S. market undergoes significant corrections, the EU offers relatively predictable growth,” noted Avi Itzkovich.
According to INREV data, European real estate funds are showing moderate but steady recovery. In the first quarter of 2025, return rates rose by 1.04%, and capital appreciation reached 0.56% — the strongest performance since 2022. Participants at the PERE Europe Forum confirmed expectations of continued sector strengthening, particularly in niche segments such as logistics, rental housing, and student accommodation.
“We’re seeing exponential growth in demand for modern logistics hubs and data centers. This is a direct result of digital transformation and the expansion of e-commerce. Investors who successfully pivot to these segments now will gain a long-term edge,” added Avi Itzkovich.
The PERE Europe Forum 2025 was not merely a platform for dialogue — it sent a clear signal: European real estate is entering a new phase of maturity. Key themes included strategic diversification, a strong focus on credit and secondaries, an uncompromising approach to ESG, and a firm commitment to technological innovation. Investors are increasingly seeking partners capable of delivering end-to-end solutions — from financing to asset management — powered by AI and green technologies.
“The next two to three years will be pivotal for the market. The winners will be those who are already acting with agility, making fast decisions, and investing in sustainable, tech-savvy assets,” concluded Avi Itzkovich.
