The negative returns generated by European commercial real estate (CRE) investments moderated in April through June, with property assets returning -0.8% from the previous quarter, according to MSCI’s Europe Quarterly Property Index for Q2.
The negative quarterly return was better than the -1.1% return generated in the first quarter. It was the fourth successive quarter of negative returns.
The split by property type shows that retail was the best performer on a quarterly basis for the first time since December 2010, recording a positive total return of 0.4%. Negative capital growth for retail properties was offset by a higher income return. The main drag on the index was offices, where total returns dropped from -1.6% in March to -2.4% in June, it notes.
MSCI’s Europe Quarterly Property Index measures the performance (capital return plus income return) of 13,436 property investments worth a combined total of EUR 295.1 billion.
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