Credit: FreepikThe EUR 1.2 Trillion Operational Real Estate Opportunity
New report from Eurazeo reveals how OpRE is institutionalising rapidly to become a defining category within real assets in Europe
January 7, 2026Real Estate
Written by:Rory Hickman
Key Takeaways
- Operational Real Estate is scaling fast in Europe, with the Europe-5 opportunity set estimated at over EUR 1.2 trillion.
- Eurazeo positions OpRE as a hybrid of real estate and private equity, where returns are driven by both the asset and the operating business behind it.
- Structural megatrends - ageing demographics, digitalisation, and decarbonisation - are accelerating demand for service-led, operationally intensive real assets across multiple sectors.
“At Eurazeo, we see the crux of the opportunity being the provision of growth equity meeting a latent demand for capital to modernise and make more efficient those property‑rich businesses that are constrained by their real estate.” Pierre Larivière, Partner & Co-Head of Real Estate, and Riccardo Abello, Partner & Co-Head of Real Estate.
Operational Real Estate (OpRE) is gaining traction across Europe as investors search for resilient, demand-driven strategies that go further than conventional rent-based models. In a new white paper, Eurazeo makes the case for OpRE as a fast-evolving segment that sits at the intersection of real estate and private equity, where performance is shaped not only by the asset itself, but also by the operating business behind it.
Eurazeo also argues that the sector is being accelerated by long-term structural changes, including ageing demographics, digital adoption, decarbonisation, and the continued shift towards experience-driven consumption.
The report highlights a broad pipeline of service-led assets where the operational model is central to performance, spanning specialist residential, private healthcare, hospitality and leisure, and storage, including data centres and self-storage.
By focusing on sectors backed by essential needs and long-term demand, the paper shows how OpRE strategies can combine real estate fundamentals with platform-building potential, creating opportunities for both resilience and growth across the Europe-5.
This combination is precisely what creates room for specialist investors to consolidate local, often family-owned or small-operator assets into scalable, professionalised platforms, unlocking value through modernisation, operational improvement, and platform build-out.
Against a backdrop of shifting capital flows and changing occupier needs, Eurazeo positions OpRE as a strategic route to diversification, inflation resilience, and growth potential, particularly in sectors where operational performance is a defining driver of returns.
Read the full report to explore how OpRE is being positioned as a cornerstone of Europe’s evolving real assets landscape.
Operational Real Estate (OpRE) is gaining traction across Europe as investors search for resilient, demand-driven strategies that go further than conventional rent-based models. In a new white paper, Eurazeo makes the case for OpRE as a fast-evolving segment that sits at the intersection of real estate and private equity, where performance is shaped not only by the asset itself, but also by the operating business behind it.
Why Operational Real Estate?
Rather than treating real estate as a passive income stream, the Operational Real Estate in Europe - Sectoral Insights and Market Focus report frames OpRE as a model built on active management, customer-led demand, and the ability to unlock value through operational improvement, service enhancement, and platform-scale growth.Eurazeo also argues that the sector is being accelerated by long-term structural changes, including ageing demographics, digital adoption, decarbonisation, and the continued shift towards experience-driven consumption.
The report highlights a broad pipeline of service-led assets where the operational model is central to performance, spanning specialist residential, private healthcare, hospitality and leisure, and storage, including data centres and self-storage.
By focusing on sectors backed by essential needs and long-term demand, the paper shows how OpRE strategies can combine real estate fundamentals with platform-building potential, creating opportunities for both resilience and growth across the Europe-5.
Finding Operational Opportunities
Europe’s biggest economies - the UK, France, Germany, Italy, and Spain - sit at the centre of the OpRE opportunity: across Eurazeo’s target sectors, the investable universe in these five markets alone is estimated at more than EUR 1.2 trillion, supported by deep, liquid real estate markets, but still characterised by fragmented ownership, limited institutional penetration, and uneven operational sophistication.This combination is precisely what creates room for specialist investors to consolidate local, often family-owned or small-operator assets into scalable, professionalised platforms, unlocking value through modernisation, operational improvement, and platform build-out.
Against a backdrop of shifting capital flows and changing occupier needs, Eurazeo positions OpRE as a strategic route to diversification, inflation resilience, and growth potential, particularly in sectors where operational performance is a defining driver of returns.
What’s inside the report?
- How OpRE differs from traditional real estate and what this means for underwriting, risk, and value creation.
- Why the largest economies are the natural focus for platform-building, consolidation, and institutional capital deployment.
- A structured view of where OpRE demand is strongest, and why specific segments are attracting increased investor attention.
- The megatrends driving structural demand and how demographic change, digital infrastructure needs, decarbonisation targets, and evolving consumer expectations are shaping the next cycle of growth.
- Which operational capabilities are essential for OpRE success, from KPI-led management and pricing strategies to ESG integration and tenant-operator alignment.
Read the full report to explore how OpRE is being positioned as a cornerstone of Europe’s evolving real assets landscape.