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Performance of European real estate assets bounces back in Q3 as the impact of COVID-19 eases

The INREV pan-European quarterly Asset Level Index recorded a total return of 1.20% in Q3 2020, recovering back into positive after the -0.33% total return reported in Q2. 

Key highlights of the Asset Level Quarterly Index Q3 2020: 

  • The improved Q3 performance was largely driven by positive capital growth, with a quarter-on-quarter increase of 146 bps to 0.26%. The Q3 income return stood at 0.94%, a slight improvement on 0.88% registered in Q2.  
  • Performance improved across all main sectors, with industrial/logistics bouncing back the strongest to deliver a Q3 total return of 3.08%, compared to just 0.11% in the previous quarter. Although significant, the quarterly 190 bps improvement still left the Q3 retail total returns in the negative at -1.10%. 
  • Germany, France and the Netherlands all reported quarterly total returns of between 1.67% and 1.77% this quarter. With capital growth still in the negative, the UK market continued to lag behind with the Q3 performance of 0.34%, albeit a significant improvement on -1.94% reported in Q2 2020. 

INREV is calling for members to join this important initiative. Those who sign up now and contribute their data will benefit from a fee-free first year. 

If you would like to schedule a demo of the Asset Level Index Analysis tool or have questions about this index, contact Connor van Leeuwen (connor.vanleeuwen@inrev.org) or visit the Asset Level Index page.
 

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