Home / News / Press Releases / Spezialfonds outperform German inflation despite a dip in German non-listed real estate vehicles in Q3

Spezialfonds outperform German inflation despite a dip in German non-listed real estate vehicles in Q3

12 December 2018, Amsterdam – INREV’s German Vehicles Quarterly Index for Q3 2018 recorded a slowdown in performance of German vehicles. Overall returns fell to 0.74% compared to 1.06% the previous quarter, bringing the 12-month rolling return to 4.02%.

The downturn was largely driven by slower capital growth at 0.37%, dropping off from 0.50% in Q2 and 1.01% in Q1 2018.

Spezialfonds still robust

The Spezialfonds sector has tripled in size over the past eight years and has persistently outperformed German inflation, with an average quarterly performance of 0.91% from Q2 2000 to Q2 2018, almost triple that of inflation at 0.36%. 

Spezialfonds significantly outperformed Publikumsfonds in Q3, with a total quarterly return of 1.53%, compared to 0.31% for Publikumfonds. Over 12 months this equates to 7.69% and 2.12%, respectively, marking a substantial gap between the two vehicle types and reinforcing the dominance of Spezialfonds, which have consistently outperformed Publikumsfonds since 2014. 

Domestic strategies stay strong

Vehicles targeting Germany performed reasonably well in Q3, delivering 1.90% – only marginally down from the 2.00% total return achieved in Q2.
Conversely, vehicles with a global strategy were less successful slowing from 0.73% in Q2 to a total return of 0.04%. 

Commenting on the findings, Henri Vuong, INREV’s Director of Research and Market Information, said: ‘While reasonably significant, the quarterly fall in performance may say more about a fairly typical drop-off at this point in the year than anything more sinister. The 12-month rolling return of 4.02% is a more accurate indicator of the underlying strength of the German non-listed real estate market. The ongoing strong performance of Spezialfonds shows that they could be an attractive option for institutional investors who are looking to improve their returns in periods of increasing inflation.’

– Ends –

For further information, please contact: 

Johlyn da Prato, johlyn.da.prato@inrev.org |+31(0)621397456
Lauren Hewitt, inrevteam@firstlightpr.com | +44 (0) 7776 146 434
Jack Rodgers, inrevteam@firstlightpr.com | +44 (0) 7580 427 746

Notes to Editors

About the INREV German Vehicles Quarterly Index 

The INREV German Vehicles Quarterly Index measures net asset value performance of non-listed real estate vehicles domiciled in Germany. Performance is measured on a quarterly basis and is net of fees.

The Index was launched in 2016 along with an accompanying index analysis tool, and with support from the BVI, the German Investment Funds Association.
The Index is published nine weeks after quarter end. This Q3 2018 Index release includes 192 vehicles, which collectively represent a total gross asset value of €141.2 billion as at end Q3 2018.

About the German Real Estate Vehicles and Inflation Research Paper 

This study looks into the relationship between German non-listed real estate vehicle performance and inflation. The analysis for this paper is based on the INREV German Vehicles Quarterly Index.


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 €2.7 trillion and INREV members deliver €385 billion of stimulus to the real economy of Europe.

INREV has 451 members which include 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.

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.