Deep dive into the world of data with the Asset Level Index Analytical Tool
The INREV Asset Level Index provides market participants with a refined layer of granularity to better understand the drivers of real estate performance. Beyond the traditional country and sector insights available through the fund level indices, the asset level index enables more detailed breakdowns across cities, sectors and much more. This additional transparency sets the stage for a more informed interpretation of the latest results and the trends shaping performance across the region.
Performance overview for 2025
In Q4 2025, the Asset Level Index delivered a total return of 1.28%, leading to a 12-month rolling total return of 6.22%. This represents a 108-bps increase compared to 2024. The income return was the most important driver of performance in the past year, totaling 4.16%. Capital growth reached 1.98% in 2025, signalling a shift back to positive territory compared to the 3-year rolling annualised capital growth, which stood at -1.82%.
Improving sentiment and stabilising market conditions
2025 marked a year of relatively stable performance, with positive investment sentiment, as highlighted in the latest INREV Consensus Indicator. Structural supply shortages and strong rental demand in specific market segments, in combination with interest rate stabilisation and expected future rate cuts, boosted performance results across Europe.
The performance spread between the lower and upper quartile fell significantly as well, coming in below 200 bps for all four quarters in 2025, the lowest since Q3 2020. This is likely related to a stabilisation in real estate pricing, after a period of sharp repricing caused by interest rate hikes starting in 2022.
Cross‑regional and sector insights
The database of quarterly data on 6.846 assets with a combined market value of €197 billion allows all data providing members¹ to analyse the direct property performance of European real estate. Drilling down to geography and sector, the Netherlands, Southern Europe and the Nordics have delivered positive returns across all main sectors. For the Nordics, residential real estate was a key driver of performance in the fourth quarter of 2025 (2.66%), supported by persistent housing shortages, resilient demand and demographics. For Southern Europe, retail assets boosted returns (3.47%), aided by tourism-driven demand and a broader economic recovery for the region. For the United Kingdom, Germany and France, performance looks more dispersed, with some sectors doing well and others trailing.
Spotlight on the Nordics residential market
Looking closer at the Nordics residential market, Denmark and Sweden led performance with quarterly total returns of 3.06% and 3.24%, respectively. Investor sentiment for these market segments is strong, as both are featured amongst the most preferred country and sector destinations to deploy capital in the 2026 Investment Intentions Survey.
Digging even deeper, the Asset Level Index enables performance analysis at the city level as well. This allows for more detailed insights that lead to more informed and better investment decisions. In Denmark, the residential market in Copenhagen delivered a total return in Q4 2025 of 3.38%, slightly above the 3.06% registered for wider Denmark. Unfortunately, confidentiality criteria prevent city-level data for Sweden and Norway from being displayed. However, a more detailed breakdown is available for Finland. For the cities where information can be displayed, Turku appears to be outperforming other cities like Espoo, Helsinki and Tampere, with a fourth quarter total return of 1.63%. But still notably lower than residential real estate performance in Denmark, and specifically in Copenhagen.
A call for broader data coverage
INREV would like to take this opportunity to urge managers and investors to provide asset-level information. The aforementioned analytical insights illustrate some possibilities; however, data coverage needs to improve for more detailed breakdowns to become available, including more city, sector and country combinations. If you want to find out more, please reach out to connor.vanleeuwen@inrev.org.
¹ Investment manager members are required to provide asset-level information to get access to the full version of the Asset Level Index Analysis Tool