INREV’s new pan-European quarterly Asset Level Index has recorded a total return of 1.97% in Q2 2019, driven by capital growth of 0.97% and income return of 1.01%.
This third release of the index reflects data from 5,676 assets with a total combined AUM of €154.5 billion as at end of Q2 2019, covering around 20 countries and all key real estate sectors.
The Netherlands remains the best performing market with a robust total return of 3.08%, much of which was driven by strong capital growth in the residential sector. Germany and France posted total returns of 2.85% and 2.60%, respectively. By contrast, the UK – representing the largest percentage allocation of the entire index (27.3%) – demonstrated the weakest performance of the major European countries with a total return of 0.39% in Q2 2019. Capital growth for UK remains negative with -0.70% and shows a continuing downward trend when compared to previous quarters.
In terms of sector, residential delivered the most compelling results with a total return of 2.98%, closely followed by offices at 2.61%. The industrial/logistics sector achieved a total return of 2.56%. Retail sector performance improved slightly to 0.03% but remained the weakest sector, mainly driven by a negative capital growth of -1.16%.
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. For more information on how to sign up, contact Vitaliy Tonenchuk or visit the Asset Level Index page
The INREV Asset Level Index is a quarterly pan-European index measuring real estate market performance on an asset level across Europe.