Annual results reveal stable performance of European ODCE funds

The latest annual results from the European ODCE Index provide insights into how core open end diversified funds are performing as the real estate market continues to recover from the downturn that began in 2022. Following the publication of the Q4 2025 ODCE Index, here are some key highlights from the index’s annual results.

ODCE Index records seven consecutive quarters of positive return 

The ODCE Index’ s one year rolling total return was 3.75% as of Q4 2025, reflecting the stable and positive performance of the latest quarters. This is a 312 bps improvement over the Q4 2024 equivalent of 0.63%, further proving the recovery from the lowest point during the downturn in the second half of 2022. Between Q2 2022 and Q2 2025, the cumulative negative capital growth was -21.4%, after which the capital growth turned positive. The 16 funds included in the ODCE Index represent a total GAV and NAV of €42.8 and €30.7 billion, respectively.  

On a 3-year rolling basis, the annualised performance remains in negative territory, as the number is still impacted by the record low performance of Q4 2022 at -5.57% and subsequent quarters of negative returns. Annualised total returns on a 5- and 7-year rolling basis stood at 0.12% and 0.97%, respectively. 

Source: INREV European ODCE Fund Index Q4 2025 

ODCE funds’ stable redemption levels support their promised investor liquidity  

The ODCE Index Net Flows chart shows the realised in- and outflows of capital into the index, revealing investor sentiment and the effect of changing market conditions. ODCE funds continued to prove their ability to meet investors’ requests in 2025, as redemptions totalled €1.16 billion. In 2024 and 2023, this figure stood at €1.20 billion and €1.07 billion, respectively. The stable redemption levels show that funds are offering investors liquidity and exit opportunities when requested. At €732.7 million, the ODCE Index level net flows showed the highest level since Q3 2022.

Source: INREV European ODCE Fund Index Q4 2025

Read more about ODCE funds’ redemption mechanisms in INREV’s recent research paper.

Sentiment towards Spain reflected in geographical allocation

According to the recently launched ANREV/INREV/PREA Investment Intentions Survey 2026, Spain is the third most preferred location when investing in European real estate. This sentiment is reflected in the development of ODCE funds’ country allocations. As of Q4 2025, Spain is the fourth most allocated towards geography, almost doubling their allocation share over the past five years to 10%. This marks the first time since 2017 that the United Kingdom has been overtaken by Spain. 

Source: INREV European ODCE Fund Index Q4 2025

You can download the report, Excel Supplement and snapshot for Q4 2025 on the dedicated page for the European ODCE Index.