The real estate fund sector in the UK and Ireland continues to face mounting challenges, closing 2024 with full-year net outflows of £1.155 billion, according to the latest data from Calastone, the largest global funds network. This marks the seventh consecutive year of capital flight from the sector.

The UK and Irish real estate markets underwent a transformative year in 2024, characterised by contraction, mergers, and cautious optimism. After years of declining capital values, signs of recovery began to emerge, buoyed by stabilising inflation and the initial stages of base rate cuts.

UK real estate will need to adapt to wetter, hotter and colder environments ESG regulations, government policy and occupiers will demand real estate fit for purpose in extreme weather Green buildings are being demanded by policy, consumers and investors.

The classic definition of core real estate means a high-quality asset in a good location with solid tenants. Yields are low but stable and income is far from risky – indeed core assets were valued for their resilience during economic downturns.