Around 10% of European real estate stock will be floated in the next five to ten years, claims Nick van Ommen, the outgoing CEO of the European Public Real Estate Association (EPRA). Currently the figure is less than 7% of a total figure of more than EUR 7 tln.

Around 10% of European real estate stock will be floated in the next five to ten years, claims Nick van Ommen, the outgoing CEO of the European Public Real Estate Association (EPRA). Currently the figure is less than 7% of a total figure of more than EUR 7 tln.

In Australia, the most mature market in the world, over one third of all real estate assets in the country is listed. By comparison, the figure is about 10% in the UK while in Germany it is less than 2%. The global average is 10%.

In an interview in Dutch daily Het Financieele Dagblad, Van Ommen said that both private and institutional investors were often reluctant to invest in real estate due to limited supply. The harmonisation of European tax-friendly real estate investment trusts will further stimulate growth of the listed sector, he added: ‘The rules differ in the details. But government see that certain companies perform better than others. Legislation will be adapted in line with what works best.'

Van Ommen cited the example of residential investments which currently do not fall under the tax-friendly regime recently introduced in Germany. 'I predict that the Germans will adapt their legislation in 2008 to facilitate investment in residential property through tax-friendly funds. Simply because it is clear that this type of fund performs better outside Germany.'