Subject of the study is the European market for portfolio transactions in the real estate markets. An introductory chapter discusses the macroeconomic background for portfolio transactions in Europe and the development of the European real estate markets. The second main chapter of the analysis is concerned with the development of the market for portfolio transactions in Europe. The third part of the study analyses the motivation for portfolio transactions on the sides of sellers and buyers, the financing of transactions and investors’ exit strategies. Finally, the report gives an outlook on expected future market developments. The report is joint work of he ZEW and Sireo Real Estate Research.The ZEW is responsible mainly for the macroeoconomic analysis, the empirical analysis of transaction motives and the descitption of financing instruments.