What are the best funds to invest in real estate?
Updated:
8 OCT, 2026
The real estate is one of the favorite sectors of European managers and investors. Therefore, in this article we wanted to analyze the best real estate funds in the current environment.
The European real estate sector is at a turning point after the change of course in the monetary policy of the European Central Bank (ECB). After an aggressive cycle of rate hikes between 2022 and 2023 to contain inflation, the institution began a phase of monetary easing that has progressively cheapened the price of money, although at its last meeting, held on June 11, 2026, Christine Lagarde opted to raise rates for the first time in almost three years.
This turn has direct implications for real estate. The lowering of interest rates helps to reduce financing, which favors both the demand for real estate assets and investment activity, especially in capital-intensive segments such as residential or logistics. Likewise, it improves the conditions of access to mortgage credit, a key factor for the evolution of the market.
However, the transmission of monetary policy is not immediate. Part of the real estate sector still reflects the impact of the previous restrictive cycle, with financing costs still high in historical terms and valuations that have been adjusted in certain segments, such as offices or retail. At the same time, structural factors, such as the shortage of supply in certain geographies or the strength of specific niches (student residences, logistics, data centers), continue to support demand and rents.
Next, we analyze a selection of investment funds focused on the real estate sector, focusing on their profitability in recent years.
How have we selected these real estate funds?
The filtering has been done based on data from Morningstar as of October 5, 2026, in the categories Property - Indirect Global, Europe and Eurozone, excluding indexed funds.
For the comparison to be homogeneous, we have only considered institutional classes in euros, accumulation and without currency hedging. In addition, we have required a fund capital of at least 100 million euros and a minimum of five years of history, to fully cover the rate cycle.
Ranking of the best real estate funds in 2026
The ranking orders by five-year annualized return the UCITS funds of listed real estate equity available in Spain, in institutional class in euros, accumulation and without currency hedging.
PGIM Global Select Real Estate Securities
PGIM Funds (Ireland) fund, managed by the PGIM Real Estate team led by Rick Romano. The EUR I Acc class has a minimum investment of 10 million euros and current expenses of 0.72%, the lowest in the group. Portfolio concentrated in 50 values, with the United States at 67.1% and overweight in industrial and health. Reference index FTSE EPRA Nareit Developed, Article 8.
Nordea 1 Global Real Estate Fund
Fund of the Luxembourg sicav Nordea 1, delegated to Duff & Phelps Investment Management since its launch in 2011. BI EUR class with a minimum of 75,000 euros, the most accessible among global institutions. Assets of 826 million dollars, 52 positions, with Welltower (9.77%) as the first position. Current expenses of 1.08%, SRI 4, Article 8.
Nuveen Global Real Estate Opportunities Fund
Until May 22, 2026, it was called Nuveen Global Real Estate Carbon Reduction Fund; the name change has not affected either the objective or the team. It is Article 9, with 88 positions and a non-index linked approach. P EUR Acc class with a minimum of 5 million euros, current expenses of 0.80% and assets of 143 million dollars, the smallest in the ranking.
DWS Invest Global Real Estate Securities
Managed by John Vojticek since June 2016 within DWS Invest Sicav. The FC class has a minimum of 2 million euros and current expenses of 0.85%. Broad portfolio, of 93 values, with retail REITs (18.8%) as the first sector, ahead of healthcare and industrial. The KID specifies that the fund is not managed in reference to an index. Article 8.
AXA World Funds Global Real Estate
As of December 31, 2025, the management company of AXA World Funds is BNP Paribas Asset Management Europe, following the integration of AXA IM. I Cap EUR class with a minimum of 5 million euros, reference index FTSE EPRA Nareit Developed and assets of 332 million euros at the end of 2025. Current expenses range between 0.80% and 0.87% depending on the source.
Best Resilient Real Estate Funds of Europe and the Eurozone
DPAM B Real Estate Europe Dividend Sustainable
Belgian law Sicav: the KID of October 1, 2026 indicates CA Indosuez Fund Solutions as the management company, while the brand remains DPAM. Index-agnostic strategy, focused on high dividend values and small and medium capitalization companies with low beta. F Cap Class for eligible investors from 25,000 euros, current expenses of 1.01%. Best three-year return among Europeans (4.95%).
BNP Paribas Funds Europe Real Estate Securities
Managed by Anne Froideval, it is the European fund that has best limited losses to one year (−4.58%). Portfolio of 32 values with France (23.8%), United Kingdom (22.3%) and Germany (13.0%) as main countries; Unibail-Rodamco-Westfield, Swiss Prime Site and Vonovia lead the positions. FTSE EPRA Nareit Europe 25% UK Capped benchmark index. I Cap Class with current expenses of 0.96%, Article 8.
Janus Henderson Horizon Pan European Property Equities Fund
Guy Barnard and Nicolas Scherf manage the oldest European fund among the Luxembourgers, launched in 1998. I2 EUR Class with a minimum of one million euros, current expenses of 1.00% plus a success fee of 10%. Assets of 428 million euros, with Unibail-Rodamco-Westfield (8.85%), Segro (6.93%) and PSP Swiss Property (5.69%) as main positions. FTSE EPRA Nareit Developed Europe Capped benchmark index.
ODDO BHF Immobilier
FCP French created in 1989 and managed by Véronique Gomez and Pierre Toussain on an exclusively Eurozone universe. Klépierre (9.81%), Unibail-Rodamco-Westfield (9.69%) and Merlin Properties (8.99%) are the main positions, with a marked exposure to shopping centers. CI-EUR class from 250,000 euros, current expenses of 0.93%, SRI 6, Article 8.
AXA World Funds Europe Real Estate
Frédéric Tempel and François-Xavier Aubry have managed the fund since 2005; like its global counterpart, it now depends on BNP Paribas Asset Management Europe. I Cap EUR class with a minimum of 5 million euros and the lowest current expenses among Europeans (0.77%). Last five years (−6.04%), second in a year. FTSE EPRA Nareit Developed Europe Capped 10% benchmark index.
Types, sectors and policy: why European real estate lags behind
Before analyzing the causes, it is advisable to clarify that the two groups do not start from the same point.
The first difference is the benchmark index. Global funds are measured against the FTSE EPRA Nareit Developed or the S&P Developed Property, indices in which the United States weighs around two thirds. European funds follow regional indices: putting them on the same level would mean judging management on different markets.
And in 2026 these markets have gone in opposite directions. According to Nareit, the European index loses 9.66% in euros so far this year until October 2, while the global one gains 3.89%. European managers have moved in line with their respective indices: the delay is more due to the underlying than to the quality of management.
The first factor is the interest rate cycle. After a year with stable rates at 2.00%, the ECB raised them in June and September to contain an expected inflation of 3.0% in 2026, driven by energy prices linked to the conflict in the Middle East. The ten-year Bund closed September at 3.58%, its highest level since 2011.
For the listed real estate, the effect is twofold. The companies in the sector operate with leverage and must refinance at higher costs, while such high yields on public debt detract from the attractiveness of REIT dividends. Yields have also risen in the United States, with the ten-year Treasury above 5.3% in September, but the sector has weathered better thanks to its composition.
This is the second factor: the sectors. Among the American REITs, according to Nareit, the leaders in 2026 are the hotel industry (+39.3%), data centers (+30.1%) and healthcare (+17.5%), segments linked to tourism, artificial intelligence and population aging. In the European indices their weight is reduced: here dominate the German residential, offices, logistics and shopping centers, and only retail maintains a good state of health.
Precisely residential and offices have been the most punished. In their August commentary, Guy Barnard and Nicolas Scherf, from Janus Henderson, point to higher rates and the slowness of divestments as the cause of the weakness of the German residential.
The third factor is political risk in France, Germany and the United Kingdom. September concentrated all these tensions: the real estate sector of the STOXX 600 lost 7.1% in a single month and funds like ODDO BHF Immobilier gave up more than 10% in the same period.
Real estate ELTIFs: the alternative of private markets
For those seeking exposure to brick without the volatility of REITs, ELTIFs remain the regulated route.
France (14.1 billion euros), Germany (4.4 billion) and Italy (4 billion) lead the European ELTIF market. However, real estate only represents 6.8% of the total assets in ELTIFs, 2.3 billion: private debt (33.7%), infrastructure (27.7%) and private equity (22.5%) absorb almost all of the inflows.
In Spain, an example of a real estate ELTIF is the Mutuafondo Premium Housing ELTIF, from Mutuactivos, the first vehicle of this type constituted in Spain. It invests in homes in the main Spanish cities, with an initial focus on Madrid, and allows homeowners over 65 to transfer their main residence to the fund without ceasing to reside in it.
The comparison with exchange-traded funds should be made by structure, not by profitability: quarterly or non-existent liquidity, a minimum horizon of five years, and valuation at NAV, not at market prices. The analysis of the fundamentals of private markets shows that direct real estate has reacted less than REITs to the rise in rates.
The contents of this article are for informational purposes only and are intended for professional investors. They do not constitute financial advice, personalized recommendation, or offer to buy or sell financial instruments. Past performance does not guarantee future returns. The data comes from Morningstar and the official documentation of the management companies on the indicated dates and may vary. The institutional classes mentioned require subscription requirements and minimum amounts and may not be within the reach of all investors. The marketing of the classes mentioned in Spain is subject to their registration in the CNMV. Before making any investment decision, it is necessary to consult the brochure and the KID of the fund.
