June 2026
In the latest episode of the Just Focus by Sapians podcast, Jean-Baptiste Pracca, co-founder and partner at Mata Capital, delivers a frank analysis of the current European real estate cycle. Drawing on a comprehensive understanding of the markets — investment volumes, major buyer behavior, and analysis of hundreds of deals — he shares the convictions that underpin Mata Capital's investment approach.
A genuine, but selective recovery
Real estate investment volumes in Europe rebounded from €145 billion to €215 billion between 2023 and 2025. This significant increase should not obscure the deeply differentiated nature of this recovery across sectors and geographies. In an environment of sustainably higher interest rates, passive management no longer creates value: it is active management — asset repositioning, change of use, operational efficiency — that is now emerging as the primary driver of performance.
Jean-Baptiste Pracca also highlights a structural fact that is often overlooked: European real estate rental yields have remained positive over the past twenty years. It was valuations that were primarily affected by the cycle change, not real estate's intrinsic ability to generate income.
SCPIs: an allocation error, not a product flaw
On the subject of SCPIs, the assessment is direct: "SCPIs didn't collapse because of the product. They collapsed due to a herd mentality: everyone bet on office space at a time when diversification was needed." The error is not in the vehicle, but in the sectoral concentration and the failure to anticipate the cycle reversal.
Offices, retail, hospitality, residential: a clear sectoral overview
The episode offers a detailed analysis of asset class perspectives, clearly identifying sectors in recovery, those under pressure, and those requiring caution. Jean-Baptiste Pracca also discusses the opco-propco thesis and real estate private equity strategies, specifying for which investor profiles and over what time horizons these approaches are relevant.
Building a real estate allocation in 2026
Through a concrete exercise — how to allocate 500,000 euros to real estate in 2026 — the episode offers a practical framework for thinking about the principles of geographical and sectoral diversification to integrate into a long-term allocation. Jean-Baptiste Pracca also shares three convictions that go against the current consensus on European real estate over the next five years.
Mata Capital is an independent real estate asset management company, established ten years ago, managing assets for institutional and private clients with a decidedly active approach.
The episode is available on podcast platforms and YouTube.
This content is published for informational purposes only and does not constitute investment advice or a recommendation. The opinions expressed reflect Mata Capital's views as of the recording date and may change.