The average total global expense ratio (TGER) for European nonlisted real estate funds based on gross asset value was 0.95 percent, according to the INREV Management Fees & Terms Study 2022.
However, there is considerable variation based on key fund characteristics. Funds with a multi-country and/or multi-sector strategy command higher TGERs than those focused on a single country or sector. INREV suggests the increased operational costs associated with managing assets in different jurisdictions and across sectors account for a large part of the differential.
Core funds, many with a single-country and/or single-sector focus, have a lower average TGER of 0.81 percent (based on GAV) compared to the European ODCE funds, a group of core, open-end pan-European diversified funds with an average equivalent of 0.97 percent. However, it is worth highlighting that the European ODCE funds have notably lower TGER characteristics than an average multi-country/multi-sect
