Signs of recovery and renewed investor confidence in nonlisted real estate in Q4 2020

Results from the latest INREV Pan-European Quarterly Asset Level Index reveal a steady improvement in performance for fourth quarter 2020, with total returns reaching 1.92 percent — a significant uplift compared with the 1.21 percent seen in the third quarter. Capital growth improved to 1.00 percent on a quarterly basis compared to 0.27 percent in the third quarter. Income return dipped slightly to 0.91 percent, versus 0.94 percent registered in the third quarter. 

These results reflect returning investor confidence, following a year of great uncertainty that saw annual total return of only 3.41 percent and disruption for the European non-listed real estate industry. The INREV Quarterly Fund Index tells a similarly positive story, with a total return of 1.70 percent in the fourth quarter 2020, increasing from the 0.96 percent in the previous quarter. Investors’ continued preference for core strategies was ref