Mind the Gap: Exploring the Divergence in Public and Private Real Estate Markets
IVSC Perspectives Paper – July 2025
Why do valuations for public and private real estate assets often diverge—even when they’re underpinned by the same underlying properties? And what does this mean for investors, regulators, and valuation professionals?
In this IVSC Perspectives Paper, we explore the persistent valuation gap between publicly traded real estate vehicles (like REITs) and privately held real estate portfolios. Drawing on insights from global market participants, the paper highlights key drivers of divergence—from valuation frequency and market sentiment to information asymmetry and the importance of basis of value.
This is the first in a two-part series exploring valuation issues in real estate. The paper aims to initiate an open conversation around transparency, governance, and the implications of valuation practices across markets.
📘 Key themes include:
- The impact of market structure and unit of account
- Differences in investor profiles and time horizons
- Why valuation date and basis of value matter
- Information asymmetry and its effects on volatility
- What divergence does—and doesn’t—tell us about valuation quality
🔍 Read the full paper and share your feedback to help inform IVSC’s standard-setting and future publications.
📬 Send feedback: contact@ivsc.org
Click the link below to download and read the full Perspectives Paper: