INREV’s newly launched asset-level index has recorded double-digit returns and capital growth from real estate assets across Europe.
The European real estate association said the annual Asset Level Index shows a total return of 10.23% in 2018 as well as capital growth of 5.74% and an income return of 4.27%.
The index – which measures the performance of the real estate assets across Europe on an annual basis – covered data from 6,038 assets with a total combined managed assets of €151.6bn, covering around 20 countries and all key real estate sectors, INREV said.
The Netherlands recorded the best national performance as it posted total return of 15.46%, due mainly to strong capital growth in the residential sector.
Germany and France posted total returns of 12.18% and 9.55%, respectively.
The UK – which represented the largest percentage allocation of the whole index (28.3%) – ”demonstrated the weakest performance of the major European countries” with a total return of 5.89% in 2018, the figures revealed.
The residential sector recorded a total return of 16.36%, closely followed by industrial/logistics at 15.51%. The office sector achieved a total return of 9.48% and retail’s total return was 4.15%.
Henri Vuong, INREV’s director of research and market information, said: “This is an impressive set of returns that will no doubt reinforce investors’ current positive view of non-listed real estate, which is based on an underlying asset class in good health that’s built on strong foundations.”