European Real Estate funds generated negative returns of -9.3% in the final quarter of 2022, taking the total return to -2.4% for the year, according to new data from MSCI Real Assets.
The figure compares with negative returns for property equities of -38.2% for 2022, according to the research, which highlights that the headwinds facing European commercial property continued into the final quarter of the year.
According to MSCI, all property sectors registered negative total returns in Q4, with the industrial sector - that makes up 30% of the index - worst affected.
Retail proved more resilient in comparison, falling just 2.2%.
MSCI said that the decline in total returns across all property types in the final quarter of the year was steeper than that recorded during the depths of the Global Financial Crisis (GFC), as evinced by the MSCI pan-European quarterly property fund index.
The index tracks the performance of 19 open-ended cross border funds with net asset value NAV) of €51.6 bn, as of 31 December 2022.
