Despite a slight recovery of real estate prices in Germany, the situation for real estate funds remains tense. Particularly Open real estate funds for private investors record dramatic capital outflows. This development leads to fund resolutions, falling returns and structural market changes. The causes lie in increased interest rates, changed user behavior in commercial real estate, regulatory uncertainties and increasing competition through other asset classes.
Private investors remove real estate funds massively capital
In the period until March 2025 have private investors around 11,44 Dedicated billions of euros from European open real estate funds - an increase in 20 Percent compared to the previous year. In Germany alone 2024 more than five billion euros deducted from corresponding products. In January 2025 the volume of the returns reached a historical high. The monthly inflows have been negative for over a year.
Fund resolutions and liquidity bottlenecks
Due to the ongoing returns, several providers close their funds. For example, a British asset manager has its three real estate funds for private investors with a volume of 1,8 Billions of pounds dissolved. Other fund companies also, including international providers, Give products up, Since this has not reached the required size or profitability. In many cases it is exactly the private investors, which increase liquidity pressure about return requests and thus force a closure.
Returns decrease, Evaluation problems burden the trust
The returns of open real estate funds are very declining. Individual products have recently hardly achieved any earnings, In some there were significant depreciation on property values. The regular, but not up -to -date evaluation of real estate leads to this, that investors often deduct capital as a precaution, Before possible value corrections take place. This delay in pricing reduces the trust of investors in addition.
Challenges in office properties and environmental requirements
Many of these funds for private investors invest in office- and retail properties, The consumer behavior that have come under pressure through home office trends and changing consumer behavior. There are also stricter energy efficiency- and environmental guidelines, make investments in the building stock necessary - which has a negative impact on profitability.
outlook: The model of the open real estate fund for private investors is on the test bench
The persistent capital expulsions indicate a profound structural change. Classic open real estate funds with daily return options are increasingly under pressure. Investors increasingly prefer liquid, Transparent and diversified forms of investment. In the future, specialized funds with clear focus on sustainable or infrastructure could, Combined with innovative return rules, be more attractive. However, a prerequisite is a more stable market and new trust in the investor page.
