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Non-listed real estate returns exceed two per cent for the first time since 2010

European non-listed real estate funds continue to perform positively, with overall returns for the second quarter totalling 2.66 per cent, according to the INREV Q2 2014 Quarterly Index.

This compares favourably with a return of 1.31 per cent in the previous quarter.
 
Capital appreciation has driven performance which increased to 1.81 per cent in Q2 – up from 0.70 per cent in Q1 2014.
 
The UK delivered a strong performance at 5.01 per cent while continental Europe hit 1.41 per cent compared with 0.48 per cent in the previous quarter.
 
Southern European funds showed improved performance at 4.30 per cent - up from 2.59 per cent in the previous quarter.
 
Value added funds outperformed core funds for the fifth quarter in a row, at 3.38 per cent and 2.54 per cent respectively.  On a one year rolling annualised basis value added funds returned 7.73 per cent against core funds at 6.08 per cent.
 
Retail was the best performing sector at 4.93 per cent followed by industrial and logistics at 4.02 per cent, offices at 2.12 per cent and residential at 0.55 per cent.
 
Matthias Thomas, CEO of INREV says: “Performance in Q2 2014 was the strongest we have seen for some time, with total returns exceeding two per cent for the first time since Q1 2010. These results should be warmly welcomed by investors; they’re a clear sign that the market is bouncing back across most of Europe.”

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