INREV: Slow correction continues for European non-listed real estate

Performance of the European non-listed real estate market was characterized by a continued, slow correction in second quarter 2023. According to the INREV Quarterly Fund Index the total returns hit –0.47 percent. This was driven by a decline in capital growth which dipped to –1.24 percent, marking the fourth consecutive quarter of negative performance. This equates to an overall decrease of –11.58 percent over the last four quarters. However, the broader economic picture reveals some positive signs as inflation continues to decline, albeit projected to remain at notably elevated levels throughout 2023.

The United Kingdom delivered the strongest performance — and the only positive result of all main geographies — with a total return of 0.08 percent in second quarter 2023. This was driven by improved capital growth which rose to –0.97 percent, marking the United Kingdom’s first positive performance since second quarter 2022. It also reflects the United Kingdom’s