Looking back at 2025
European funds delivered highest calendar year performance since 2021
The INREV Quarterly Fund Index maintained positive and stable performance throughout 2025, with a Q4 2025 total return of 1.24%, the highest in 2025. This is the first time since 2021 that the INREV Quarterly Fund Index has delivered positive performancein every quarter of a calendar year. The three year rolling annualised return also turned positive in Q4 2025, reaching 0.82% compared with -1.06% in Q4 2024.
The one year rolling capital growth returned to positive territory at 1.33% in Q4 2025, compared with -0.33% in Q4 2024. At 3.07%, the one year rolling distributed income return remained broadly in line with the Q4 2024 equivalent of 3.03%.
The INREV Quarterly Fund Index includes 315 funds and represents total gross asset value (GAV) of €308.5 billion as at Q4 2025.
Source: INREV Fund level Index 2025 Q4
Dutch and Nordics funds outperform all countries and regions
Dutch-focused funds continue to outperform other geographies, particularly when compared with other single-country vehicles. However, their one year rolling total return has declined to 8.81% in Q4 2025 from the 9.64% reported in Q4 2024. Due to the strong performance in the two most recent years, the Dutch funds also outperformed on longer time horizons.
The Nordic funds outperformed all countries and regions for the first time since Q2 2021, with a quarterly total return of 3.19% in Q4 2025. Their one year rolling return is the third highest among the geographies and has increased significantly to 8.09% in Q4 2025, from -1.27% in Q4 2024.
The UK-focused funds and the Pan European funds reported one-year rolling returns of 3.85% and 3.19%, respectively. The UK-focused funds performance declined compared with the Q4 2024 equivalent (4.43%), while the Pan European index improved from 1.27% reported in Q4 2024.
Germany-focused funds continue to underperform and lag behind the other main geographies, with a one year rolling return of 1.52%. However, after recording their first negative calendar year performance since the inception of the fund index in 2024, German funds have returned to positive territory. They have delivered positive performance throughout 2025, with Q4 2025 returning 0.75%, their strongest quarterly result since Q1 2023.
Source: INREV Fund level Index 2025 Q4
Residential continues to outperform, with office returning to negative territory
By the end of 2025, all sectors except offices had delivered eight consecutive quarters of positive performance.
Residential funds outperformed all other single sector strategies throughout 2024 and 2025, reporting a one year rolling return of 7.25% in Q4 2025, in line with the 7.10% recorded in Q4 2024.
Retail and industrial/logistics focused funds posted similar one year rolling returns in Q4 2025, at 4.82% and 4.65% respectively, both increasing from 3.37% and 3.67% in Q4 2024. The similar returns in 2024 and 2025 contrast with earlier years, when retail largely outperformed in 2023, and underperformed between 2017 to 2021.
After two quarters of positive performance, office funds returned to negative territory in Q4 2025, recording a total return of -0.11%. Their one-year rolling return remains the only negative result among the single sector specialists, at -0.87%, although this represents an improvement from -2.11% in Q4 2024.
Source: INREV Fund level Index 2025 Q4
You can download the report, Excel Supplement and snapshot for Q4 2025 on the dedicated page for the INREV Fund Index.