The INREV Quarterly Fund Index has revealed a sharp correction in performance for the European non-listed real estate market in third quarter 2022.
Total return fell to -1.60 percent, dramatically down from the 2.61 percent recorded in the previous quarter, marking the lowest quarterly performance since second quarter 2009, when the impact of the Global Financial Crisis (GFC) was in full effect.
European non-listed real estate performance in the third quarter saw a quarter-on-quarter capital growth decline of 429 basis points (bps) to -2.34 percent as investment sentiment took yet another hit. The sharp correction is driven by the ongoing energy crisis – triggered by Russia’s invasion of Ukraine – leading to record high inflation and substantial, rapid interest rate rises across European markets.
United Kingdom leads the correction
While the correction is taking place across almost all markets, the scale of the decline is most acute
