INREV’s Quarterly Fund Index has confirmed an ongoing correction in the European real estate market. The fourth quarter 2023 performance was yet again negative, a total return of –1.70 percent, and a sharp decline from –0.56 percent reported in third quarter 2023.
Capital growth remained the primary driver of negative performance, at –2.83 percent. This 165-basis points quarter-on-quarter decline marks a sixth consecutive quarter of falling values, bringing the total correction to –15.50 percent. As anticipated at year-end, a significant rise in income distribution by funds led to a higher distributed income return of 1.13 percent, a 52-basis points increase from the previous quarter.
The latest INREV Consensus Indicator, designed to capture market sentiment and turning points, reveals a more positive outlook with a headline reading of 50.2. It is a notable incr