Value added non-listed property funds outperformed core funds for the first time since 2011, with value added at 1.44 per cent compared to 0.58 per cent for core in Q2 2013, according to figures released by INREV.
Closed end funds also outperformed open end funds for the first time since 2011, with closed end funds at 1.03 per cent and open end funds at 0.57 per cent.
Central and Eastern European funds recorded the strongest performance in Q2 2013 with a 1.25 per cent increase but funds with a Southern European strategy suffered a drop of 1.77 per cent.
Western Europe (0.79 per cent), Pan-European (0.78 per cent) and Nordic funds (0.49 per cent) also showed positive returns last quarter, as did funds with a multi country strategy (0.37 per cent).
For single country funds France (1.63 per cent), Germany (1.03 per cent), Finland (1.72 per cent) and the UK (1.59 per cent) showed positive returns, but the Netherlands continued to struggle (-0.06 per cent) and Italy also recorded a negative performance of -0.84 per cent.
Casper Hesp, director research and market information, INREV says: "There are some significant changes in the second quarter of 2013 which could indicate that parts of the market are well on the road to recovery. Value added funds and closed end funds outperformed core and open end funds for the first time in two years, which shows that investors are beginning to step up the risk curve. This is an encouraging sign.
“The new format of the INREV Quarterly Index will bring it more in line with the INREV Annual Index and provide more in-depth information on the performance of the participating funds."