The real estate industry significantly lags behind in the completion of the European Single Market when compared to other industries like the pharmaceutical or textile industry. The Single European Act, signed in 1986, had the objective of establishing a single market by 31st of December 1992.

This paper discusses the reasons why there is no European single real estate market more than 20 years after the targeted date. The real estate industry is best characterized by strong national segmentation. One could even argue that if the commercial real estate investment sector is best described by strong segmentation one has to specify the residential real estate sector by an almost complete national segmentation.

However, recent developments like the AIFM-Directive or Solvency II should give a boost to the Europeanisation of the real estate industry. The paper examines the foreseeable milestones of the Europeanisation of the real estate industry. Furthermore, the paper discusses whether politics (including the European Commission) presses ahead Europeanisation of the real estate industry or whether is it after all the market.