Performance of European real estate assets recovers and turns positive in 2024

The INREV European Annual Asset Level Index recorded a total return of 5.04% in 2024.

• The latest recorded total return marks a notable rebound compared to its 3 and 5-year annualised total returns of -0.56% and 2.89%, respectively. At 0.73%, capital growth drove down the performance. Income return increased from 3.99% in 2023 to 4.28% in 2024, the highest level after 2017.
• Residential assets recovered from their weak 2023 performance and reclaimed first place as best performing sector in 2024 at 8.85%, followed by industrial/logistics assets at 6.31%. Retail assets continued their positive trajectory, achieving their strongest annual performance since 2017 at 5.19%. Although office assets remained in negative territory at -0.70%, this marks a considerable improvement from the -10.98% recorded in 2023.
• The Netherlands outperformed other major markets with a 9.58% return, led by their residential portfolio. Spain and the UK stood closely, returning 6.02% and 5.98%, respectively. French assets returned to positive territory for the first time in three years at 2.22%, despite a decline in capital growth (-1.78%). Germany saw a marginally positive return of 0.27%, representing a significant recovery from its record low 2023 performance.

INREV is calling for members to join this important initiative. If you would like to schedule a demo of the Asset Level Index Analysis tool or have questions about this index, contact Jeanne Besner or visit the Asset Level Index page.

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