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EUROPE Q1 real estate returns worst since 2012

Investment & finance
The INREV Quarterly Index for the first quarter of 2020 has revealed the initial signs of the negative effects of the Covid-19 pandemic on the European real estate sector, with the lowest quarterly performance since Q4 2012.

Total real estate returns dipped to 0.22 pct from 1.8 pct over the previous quarter, with capital growth slipping from 0.37 pct to -0.47 pct and distributed income falling from 1.43 pct to 0.68 pct.

Core fund performance decreased from 1.71 pct to 0.28 pct, while value-add funds fell much further, from 2.96 pct to -0.73 pct. UK funds suffered the deepest slump, from -0.15 pct to -2.46 pct. Unsurprisingly, retail funds were particularly impacted, falling from -1.32 pct to -2.2 pct, but funds focused on office, residential and industrial/logistics also saw drop-offs in returns compared with the previous quarter.

This picture is confirmed by two other indices: The European ODCE Quarterly Fund Index, which comprises low leveraged core open-end diversified funds, recorded a total return of -0.14 pct in Q1, down from 2.61 pct at the end of 2019; while the INREV Asset Level Quarterly Index revealed that total returns fell from 2.24 pct in Q4 2019 to 0.55 pct in Q1 2020. Income returns, however, remained stable at 0.96 pct.

Collectively, these data point toward an environment of down-side risk and we should anticipate lower expectations for real estate performance in Europe in the medium term. However, unlike the immediate aftermath of the global financial crisis, the market is not over-leveraged and funds are sufficiently well capitalised to be able to restructure their debt if required.
Henri Vuong, INREV’s director of research and market information

Latest news

Retail & leisure

POLAND Lidl into Homepark Targówek

schedule 22 September 2020
Opr./edited by NN

Lidl is to open a 2,017 sqm store in the Homepark Targówek retail park in Warsaw's Targówek district.

Retail & leisure

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schedule 22 September 2020
Opr./edited by NN

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E-commerce

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schedule 22 September 2020
Opr./edited by NN

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Hotels

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schedule 21 September 2020
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Property and Facility Management

POLAND CPI managing Concept by itself

schedule 21 September 2020
Opr./edited by NN

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schedule 21 September 2020
Opr./edited by NN

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Investment & finance

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schedule 21 September 2020
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Investment & finance

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schedule 21 September 2020
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deputy editor

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Investment & finance

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schedule 18 September 2020
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Office & mixed-use development

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schedule 18 September 2020
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Warehouse & industrial

POLAND Panattoni launches work on third Bydgoszcz park

schedule 17 September 2020
Opr./edited by NN

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Events

Poland Monika Żywiecka triumphs in the women’s singles!

schedule 17 September 2020
Eurobuild Conferences

The 15th Annual Eurobuild CEE Tennis Tournament endedin the best possible fashionfor Monika Żywiecka of Oakbridge Capital Advisors, with her victory in the women’s singles final.

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POLAND Phoenix charges into Rzeszów

schedule 17 September 2020
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Green projects

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schedule 17 September 2020
Opr./edited by NN

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Investment & finance

CENTRAL EUROPE Trei takes out EUR 54 mln loan from Helaba

schedule 17 September 2020
Opr./edited by NN

Düsseldorf-based retail park developer Trei Real Estate has been granted an unsecured EUR 42 mln loan from German bank Helaba.

Events

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schedule 16 September 2020
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Warehouse & industrial

POLAND Accolade flies into Szczecin Airport

schedule 16 September 2020
Opr./edited by NN

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Office & mixed-use development

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schedule 16 September 2020
Opr./edited by NN

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Warehouse & industrial

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schedule 16 September 2020
Opr./edited by NN

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schedule 16 September 2020
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Two Polish developments are among the twelve winners at the MIPIM Awards 2020, which were presented in Paris on September 15th.

Latest in Investment & finance

schedule 21 September 2020

Portivo picks up Brno Mall

Czech investment group Portiva and Micronix have bought the Central Kladno shopping centre in Brno from Crestyl for CZK 2 bln (app. EUR 74.8 mln).

schedule 21 September 2020

Vesa starts buying at Sainsbury’s

Prague-based Vesa Equity Investment has announced the acquisition of a 3.05 pct share in British supermarket chain Sainsbury’s, becoming its fourth largest shareholder.

schedule 18 September 2020

Madison buys Chmielna 89 stake

A fund managed by US investor Madison International Realty has bought a 65 pct stake in the newly completed Chmielna 89 office project in central Warsaw from Cavatina Holding.

schedule 17 September 2020

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Düsseldorf-based retail park developer Trei Real Estate has been granted an unsecured EUR 42 mln loan from German bank Helaba.

schedule 14 September 2020

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schedule 10 September 2020

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schedule 09 September 2020

HB Reavis issues 15,000 five-year bonds

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schedule 09 September 2020

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schedule 07 September 2020

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schedule 04 September 2020

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schedule 02 September 2020

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schedule 02 September 2020

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schedule 01 September 2020

Accolade awarded EUR 153 mln for Polish parks

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schedule 01 September 2020

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schedule 01 September 2020

EBRD backs Novus with USD 100 mln loan

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schedule 01 September 2020

Robust H1 results for CPI

CPI Property Group saw its net rental income increase by 13 pct y-o-y in H1 2020 to EUR 164 mln.

schedule 31 August 2020

Warimpex sees value in switch to offices

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schedule 27 August 2020

CPI embraces Concept

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schedule 17 August 2020

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schedule 17 August 2020

Eften adds latest Vilnius office building to portfolio

Eften Real Estate Fund III has acquired the Rutkausko office building in Vilnius for EUR 11.8 mln from UAB Sonex Consulting.

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