Pan-European property funds delivered their best quarterly performance since IPD records began in the three months to September.
The IPD Global Quarterly Property Fund index – which launched in 2008 – found pan-European fund returns accelerated to 4%, up from 3.2% in June.
The strong European performance helped to lift the global index to 3%, a level last seen in June 2011.
The latest quarterly results mean property funds have outperformed bonds and real estate equities in the past 12 months, with a return of 11.6%, but have lagged behind equities overall.
US funds also saw growth accelerate, hitting 3.1% in -September, up from 2.8% in June.
However, growth in Asia Pacific slowed to 1.9% in Q3 after reaching a high of 2.5% in the three months to June.
The UK, which recorded the highest regional return in Q2, also slowed slightly, from 4.1% to 3.8%.
Mark Clacy-Jones, vice-president at IPD owner MSCI, said: “The recovery in capital returns seems to be confirmed. All four regions benefited from positive 12-month capital returns, which had not been seen since mid-2011.”
Industrial remained the standout sector, outperforming on a quarterly and annual basis.
