Clients often ask us the same question: “How’s the market? Who’s hiring? Who’s not?”
It’s a fair question — but a deceptively broad one.
Despite feeling “small” from the perspective of each participant, the European real estate market is vast.
Research by McKinsey & Co shows that buildings and land make up roughly two-thirds of global net worth in many advanced economies — underscoring how large and diversified the real-estate market really is. When you combine equity investors, lenders, developers, operators, advisors, and the full ecosystem of finance, tax, legal and asset management talent, the market is anything but small.
Debt vs. Equity: Where Hiring Is Really Happening
The simplest way to understand hiring patterns today is to divide the market into debt and equity.
Across Europe — debt continues to be the busiest part of the hiring market on a per-capita basis. Demand is strongest in:
- Refinancing
- Development finance
- Bridging finance
- Challenger and specialist banks building new lending teams
- Private credit funds expanding into Europe from London
Lenders and private credit platforms remain the “relative winners” in a low-transaction environment, benefiting from high yields and tighter risk frameworks.
Although Caravel’s own pipeline is currently split roughly 50/50 between debt and equity mandates, this doesn’t reflect the true demand in the market. While we see mandates roughly split 50/50 between debt and equity in our pipeline, in reality there are far more equity investors than lenders across the European real estate sector — meaning that hiring demand per lender tends to be much higher. So even moderate hiring on the debt side translates to much stronger per-capita demand.
Returns Are Converging — A Signal for 2026?
Interestingly, we are hearing from both lenders and investors that the return differential between debt and equity is narrowing. This typically precedes an uptick in investment activity and supports our cautiously optimistic tone that 2026 could see meaningfully higher transaction volumes.
Equity: Still Beds & Sheds Leading — But Signs of Life Elsewhere
On the equity side, hiring remains dominated by:
- Living sectors (PRS, BTR, Student, Senior Living)
- Logistics and industrial
These continue to attract capital and talent, and hiring includes investment professionals, asset managers, development managers, and finance specialists.
Outside these “beds & sheds” sectors, activity is more subdued — but not dead. We’re starting to see selective hiring in offices and retail, but primarily in:
- Asset management
- Development management
- Operational leadership
- Finance, tax, legal, and transaction management roles
Pure investment hiring in non-living, non-logistics sectors is still limited, but early-stage activity suggests sentiment is turning. Several clients are “sniffing around” investment roles again —a precursor to wider recovery.
The Bigger Picture
- Debt remains the core engine of hiring, especially in development especially in development and bridging finance.
- Equity is quieter, but the depth of the equity universe means opportunity remains broad even in a weak cycle.
- Lenders, private credit platforms, and specialist banks are growing the fastest.
- Asset management hiring is consistent, reflecting the operational intensity of today’s real estate.
- Investment hiring outside of living/logistics is muted, but green shoots are emerging.
Caravel’s View
Debt is still the “flavour of the month”, but the market is shifting. As the pricing gap narrows and refinancing pressures stabilise, we expect equity hiring to strengthen meaningfully into 2026, particularly in strategies repositioning assets, recapitalising portfolios, or buying into distress.
In short: Debt is busy. Equity is stabilising. Beds & sheds still dominate. And 2026 looks more promising than the last two years.
