Property: Checking In on the Open-Ended Real Estate Funds

Research evidence excerpt

Property: Checking In on the Open-Ended Real Estate Funds

Foundation

June 9, 2026 04:00 AM GMT

Morgan Stanley & Co. International plc+MProperty | Europe Bart Gysens, CFA

Equity Analyst

Checking In on the Open-Ended Bart.Gysens@morganstanley.comAna Escalante +44 20 7425-5862

Ana.Escalante@morganstanley.com +44 20 7425-3271

Real Estate Funds Paula Bayer

Research Associate

Paula.Bayer@morganstanley.com +44 20 7425-3053

Open-ended funds are a major player in the European real

Property

estate ecosystem with close to €0.9 trillion of AUM. Aggregate Europe

net inflows have been stabilising. We analyse recent data Industry View Attractive

(including 1Q26) to gauge to recent trends and to what extent

higher rates are affecting capital availability.

Key Takeaways

Aggregate net flows moderately positive in 1Q26; gross inflows intact, but we

note that notice periods can mean there is a delay in gross outflows.

Office remains a key asset class and Germany a key market for this fund group.

Rotation, rotation, rotation: while net inflows are broadly stable, we see

significant gross outflows and gross inflows, driving a rotation between sub-

sectors.

New French funds increasingly investing outside of France, with the UK capturing

a material share from these yield-focused strategies.

UK open-ended funds have become smaller, while German funds have

increasingly focused on domestic investments.

Exhibit 1: After 9 consecutive quarters of net outflows, euro area open-ended

real estate funds (which represent the lion's share with c. €830 billion AUM) saw

€1 billion of net inflows in 1Q26. But that does not paint the full picture; we note

the significant rotation every quarter, with an average €16 billion of gross inflows