INREV's quarterly index generated a total return of 2.4% for Q2 2017 and 8.1% over the last 12 months, the European association for investors in non-listed real estate vehicles said on Thursday.
The positive returns were bolstered by a maintained level of confidence in the UK (funds delivered 2.1%) with fears of Brexit being shaken off, a revival in French investment tripling to 2.9% (versus 1.0% in Q1 2017), and an uptick in Germany with returns totalling 2.4% compared to 2.2% in the first quarter.
'It is very encouraging to see such stable, positive returns across countries and sectors. These results demonstrate investors’ continuing widespread appetite for non-listed real estate as part of a balanced portfolio,' commented Henri Vuong, INREV’s director of research and market information.
Residential was still the best performing sector during the second quarter, with a 3.7% return increasing from 3.1% in the previous quarter. Offices saw the largest uplift with a 2.1% return compared to 1.6% in Q1 2017, according to the data.
Multi-country and multi-sector funds both saw increased returns as investors continue to favour diversification. Multi-sector funds returned 2.1% versus 1.6% in Q1, and multi-country funds saw a 2.2% return compared to 1.6% the previous quarter.
The figures also displayed an improved performance in both capital growth (1.3%) and distributed income return (1.1%)at the All Funds Index level.
