Global Real Estate Secondaries Hit $20 Billion

Worldwide Secondaries Market Reaches Record Volume

The global real estate secondaries market reached a historic milestone in 2025, with total worldwide transaction volume amounting to $20.3 billion, according to a report by Ares Management. The figure reflects aggregate activity across North America, Europe and Asia-Pacific, confirming that the record applies to the global private real estate secondaries market rather than any single country.

The result marks a significant expansion of the international secondary market and underscores its growing importance within global private real estate investment strategies.

Rapid Expansion Over Two Years

Global transaction volume stood at $14.6 billion in 2024 and $9.8 billion in 2023, meaning the market more than doubled in just two years. The acceleration reflects continued demand for liquidity solutions as distributions from direct real estate funds remain subdued and investors seek portfolio rebalancing opportunities.

Institutional investors worldwide are increasingly turning to secondaries as a mechanism to adjust exposure, manage duration and unlock capital in a higher interest rate environment.

GP-Led Transactions Dominate the Global Market

GP-led transactions were the primary driver of global growth in 2025, accounting for approximately $14.5 billion, or around 72% of total worldwide volume. This segment expanded by roughly 60% year-on-year.

Continuation vehicles and fund recapitalizations were widely used to extend asset holding periods while providing liquidity to limited partners. Large transactions were particularly active in sectors with resilient demand, including multifamily housing, senior living and data centers.

LP-Led Activity and Pricing Trends

The global LP-led secondaries segment reached about $5.8 billion in 2025. Sellers included insurance companies, pension funds, endowments and family offices seeking strategic portfolio adjustments.

Pricing in the secondary market frequently remained below net asset value, indicating ongoing liquidity needs among sellers and selective capital deployment by buyers.

Outlook for the Global Secondaries Market

Ares analysts suggest that the global real estate secondaries market could continue expanding in the coming years if current liquidity pressures persist. As secondary transactions become more embedded in institutional portfolio management, the segment is evolving into a structural component of the global private real estate ecosystem.

As reported by experts at International Investment, the record $20.3 billion in worldwide real estate secondaries volume in 2025 signals a structural shift in global private real estate investment, where liquidity management and flexible exit strategies are becoming central to long-term institutional capital allocation.