Data has become mission-critical to real estate fund management, shaping investment decisions, operations, regulatory compliance and investor confidence. Yet many European real estate managers still rely on fragmented systems, inconsistent standards and legacy processes that prevent data from being used effectively. The result is growing operational friction and a narrowing path to alpha, writes Sylwia Toczyska, Enterprise Account Management at Vistra Fund Solutions, in an article for Property Forum.
Recent global research highlights a crisis of coherence across Europe. Data at the Crossroads – a study jointly produced by Vistra Fund Solutions and Funds Global Intelligence – shows that real estate managers are required to unify regulatory, operational, financial and tax data across 27 EU member states, each with its own legal, regulatory and fiscal regime. Few data infrastructures were designed to operate at this level of complexity, leaving firms exposed to inefficiency, elevated risk and weaker decision‑making.
The study’s findings – based on a survey of 166 real estate professionals globally – underscore the scale of the challenge. They show that 64% of GPs around the world either abandoned a strategy or faced fundraising limitations because of poor data quality. Within the EU, that figure rises to 82%, clearly linking data fragmentation to lost capital‑raising momentum and eroding investor trust.
Europe’s regulatory and tax complexity raises the stakes
These data challenges sit within a fragile market environment. Following the pandemic, European real estate saw a sharp decline in transaction volumes and returns, with 2023 marking a cyclical low. While sentiment entering 2026 is cautiously improving, capital remains selective and increasingly focused on transparency, governance and downside protection.
Non-traditional investors, particularly from European and US family offices, high-net-worth individuals, and US private equity, are playing a growing role in European real estate. These investors demand consistent, comparable and auditable data, particularly for cross-border strategies operating through complex holding structures. Inconsistent reporting or unclear assumptions are now sufficient to stall investment decisions.
Tax has become one of the most data-dependent risk areas. The introduction of the OECD Global Minimum Tax (Pillar Two) requires managers to calculate effective tax rates across entities, jurisdictions and income streams. This depends on granular, standardised and well-governed financial and ownership data. Where data is fragmented, Pillar Two compliance becomes manual, slow and exposed to error - turning tax into a material operational and reputational risk.
EU anti-avoidance frameworks such as ATAD and DAC6 further intensify the pressure. Managers must identify, assess and report potentially aggressive tax arrangements across multiple SPVs and jurisdictions. Without integrated systems and reliable audit trails, compliance costs increase, and regulatory exposure rises.
Fragmentation starts with financial data
At the core of many data challenges lies a lack of standardisation - most notably the absence of a standardised chart of accounts. Different asset managers and service providers often use incompatible accounting structures, limiting comparability and forcing manual reconciliations across portfolios, jurisdictions and reporting regimes.
Data touches every stage of the fund lifecycle: deal underwriting, investor onboarding, AML and KYC, accounting, tax calculations, regulatory filings and investor reporting. When each function relies on different definitions and formats, inefficiency becomes structural. Legacy systems, spreadsheets and siloed databases compound the problem, while shortages in data governance skills limit the ability to extract insight even where data exists.
Industry momentum toward standardisation
Industry bodies are beginning to address these challenges. INREV has played an important role in advancing standardisation across non-listed real estate, notably through its Reporting Guidelines, the Standard Data Delivery Sheet (SDDS), the INREV Due Diligence Questionnaire, and guidance on NAV and performance measurement. While these initiatives do not constitute a full accounting chart of accounts, they establish common definitions, data categories and calculation principles, creating a foundation for comparability, transparency and stronger data governance across funds and jurisdictions.
A practical path forward
While managers cannot simplify Europe’s regulatory or tax landscape, they can take ownership of their internal data architecture. Progress starts with mapping data flows, implementing a standardised chart of accounts, strengthening governance and aligning people, processes and technology around a single source of truth.
For many firms, partnering with professional providers can accelerate this journey - reducing operational and tax risk, supporting regulatory compliance and enabling scalable growth without rebuilding everything in-house.
How Vistra can help
Vistra supports real estate managers in navigating today’s increasingly complex data environment, combining global expertise with solutions tailored to each strategy and local market. With over $1 trillion in assets under administration, Vistra Fund Solutions works with both established and emerging managers, bringing structure and discipline to fragmented data through robust governance, real‑time reporting and embedded technology.
Across the full investment lifecycle – from structuring and onboarding to ongoing administration and reporting at both fund and SPV levels – Vistra transforms complex information into decision‑ready insight that strengthens transparency, regulatory confidence and investor trust. This support is delivered efficiently through AI‑enabled solutions that scale with each manager’s evolving needs.
