European real estate funds made returns of 2.8% in the last quarter of 2015, according to the latest IPD Pan-Europe Quarterly Performance Property Fund Index.
The rise took the 12-month figure to 13.5%, indicating a slight slowdown on the rate of growth in 2015 which accelerated in the second half of the year. In June 2015, the figure had been as high as 17.4%.
however, balanced funds investing in diversified sectors saw their best returns over the year since 2007, up 8.3% year-on-year.
The underlying assets of all the funds in the index returned 2.9% and 14.2% over the 12 months.
The biggest part of this rise remained capital returns at 8% year-on-year, but this was down from a return rate of 10.45% in June 2015. Income growth remained steady at 5.8%.
UK and German asset price growth decelerated over the year according to MSCI, from 3%% and 20.7% respectively, while French assets gained momentum, up from 9.1% in June to 14.1% by the end of December.
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