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Netherlands outperformance boosts total real estate returns in Europe

8 May 2017, Amsterdam – The Netherlands posted the strongest non-listed real estate performance on record with total returns of 14%, according to the INREV Annual Index 2017.

Despite this boost, annual returns across Europe dropped to 6.0% in 2016 from a nine-year high of 9.7% in the previous year.  Much of the fall was driven by weaker performance in Q2 and Q3 which stemmed from much lower valuations in the UK during the turmoil of a Brexit referendum.

The UK plummeted to 2.2%, its lowest return since 2012 (0.6%) and far from 2015’s peak of 12.0%. In contrast, France and Germany posted robust results at 10.3% and 7.9%, respectively.  This lull in activity is emphasised by the performance in Continental Europe, which posted returns of 8% beating the UK for the first time since 2008.

The UK’s downturn in the middle of the year saw countries such as the Netherlands and France buck the general downward trend in Europe.  ‘The uncertainty surrounding Brexit caused widespread caution, but this was probably just an extension of the underlying characteristics of the largest and most volatile market in Europe.  While deployment of capital remains a challenge, there is a possibility that the UK market is stabilising after reaching its post-crisis peak of 16.7%, in 2014,’ said Henri Vuong, INREV’s Director of Research and Market Information.

By sector, residential was the best performing in 2016, reaching a 15.8% return, 6.1% ahead of 2015.  In the Netherlands, for example, residential was the most significant driver of performance accounting for 64.8% of NAV allocation.

Contrastingly, the industrial/logistics sector, which has been a highly sought-after investment opportunity valued for its security, delivered 7.4% returns in 2016 – a perhaps surprising result.  However, industrial/logistics still performed better than sectors such as retail at 5.2% and office at just 3.1%, signalling likely continued investor appetite for this sector. 

Henri Vuong, added: ‘Europe is and will continue to deliver a strong and stable performance. The UK’s Q4 recovery after Brexit signals that investor interest in Europe’s non-listed real estate industry will remain strong in 2017. Investors are still increasing their allocations to real estate and this could take several years to reach target levels for some, which points towards a continuing sense of confidence in the market.’

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For further information please contact:

Kirsty Wilson, kirsty.wilson@firstlightpr.com, +44 (0) 20 3434 3840
Justin St Clair-Charles, justin.scc@firstlightpr.com, +44 (0) 20 3617 7233

Notes to Editors

About the INREV Annual Index

The INREV Annual Index measures non-listed real estate fund performance based on annual net asset values (NAVs).

The INREV Annual Index was launched in 2004 and includes historical data from 2001. Only core and value added funds are included. All returns are in local currency, which means that exchange rate fluctuations have been stripped out. The Index is frozen, which means that historical results will not be restated in future publications.

The 2017 index includes 339 funds representing total NAV of EUR 162.5 billion.


INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.1 trillion and INREV members deliver €300 billion of stimulus to the real economy of Europe.

INREV members include around 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere. Forty new members joined INREV in 2016.

The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.