IRR performance remains negative for recently launched funds
The Q4 2024 since inception IRR of most grouped and single-year vintages in the INREV IRR Index continued to decline. This release includes 285 closed end funds across vintages from pre-2003 to post-2019.
- Despite remaining negative, the since inception pooled IRR of the post-2019 vintage group saw an improvement to -6.68% in Q4.
- Investment timing continues to be a key driver of performance. The funds launched before the GFC (2005-2007 vintages) and ahead of the 2022 inflation and interest rate surge (2018 onwards) are underperforming the other vintages.
- The composition of the IRR Index continues to reflect a decline in the launch of core funds in recent years.
- Single-sector and single-country vehicles launched in recent years are still outperforming their peers.
Analyse data
INREV has launched a powerful new IRR analysis tool, providing members with deeper insights into the performance of closed-end funds. Built on the INREV IRR Index, which tracks 285 closed-end funds across Europe with €100 billion in paid-in capital, the tool offers enhanced analytics to support better investment decisions.
Key features include:
- Custom indices - allowing members to filter data by fund style, geography, sector, and target gearing for more tailored benchmarking.
- Custom vintage groups - analyse fund performance across different market cycles, such as pre- and post-financial crisis trends.
- Comparison functionality - enables investors to assess market segments such as core versus non-core funds, or compare their funds against peer groups.
- J-curve analysis - helps users track IRR evolution over time, offering valuable insights into market shifts and fund maturity trends.
Data collection
The IRR Index is built on the data contributed by our members, making it a critical benchmark for the non-listed real estate industry. By sharing your performance data, you play a key role in strengthening market transparency and enhancing the accuracy of our indices.
How to provide data
For each fund, click on "+Add financial period data", provide the required information for the quarter and sign off the data once you are satisfied with its accuracy. Eligible vehicles may be included in the INREV Vehicle Universe, INREV Index, German Vehicles Index, European ODCE Index or INREV IRR Index.
Data validation
Data validation is carried out in a three-step process:
- Systems based validation – the system uses rules-based algorithm to validate data
- Member approval – the member needs to approve information before submission to INREV
- INREV verification – the INREV team verifies information before inclusion to the database
Data confidentiality
INREV will not disclose or share any fund level data provided by any company without the explicit approval of that company.
INREV will only use data provided by any company in a composite where the vehicle and manager are not identifiable.
For any questions or updates, contact research@inrev.org.
General Questions
What are the IRR Annual Index and IRR Quarterly Index?
The IRR Annual Index and Quarterly Indices measure the since inception internal rate of return of European closed end non-listed real estate funds. Performance is measured net of fees and costs.
The IRR is computed on both a pooled return basis and an equally weighted basis. (arithmetic mean).
Do you have to be an INREV member to be part of the index?
Data contribution to the IRR Annual Index and IRR Quarterly Index is on a voluntary basis, both members and non members of INREV can provide data for the Indices.
Although membership is required to be able to read INREV Index publications and use the Fund Level Analysis Tool.
Who can join the IRR Annual Index and the IRR Quarterly Index?
Fund managers with a fund investing in Europe can join the IRR Annual Index and Quarterly Index by delivering their fund data via the Data Platform.
No fees are requested to participate in the Index.
Can we see the individual fund IRR data available in your platform?
No, performance data is only available in aggregate form. Individual fund performance data is never disclosed and not accessible by any external party.
How can we join the INREV Index?
To join the INREV Index please contact data@inrev.org.
Index specifications
What are the criteria for INREV IRR Index inclusion?
The INREV IRR Index includes the following:
- Funds that have provided full historical cash flows since inception and the latest NAV.
- Closed end funds.
- All styles: core, value added and opportunity.
- Institutional funds, target >50% institutional holding.
- Commingled funds, target >2 investors.
- Funds invested in Europe, >90% of GAV invested in European real estate.
- The IRR Annual Index includes annually, bi-annually and quarterly valued vehicles.
- The IRR Quarterly Index includes quarterly valued vehicles
Is the index frozen or unfrozen?
The IRR Annual and Quarterly Indices are unfrozen, which means that historical data can change with future updates.
Can this index be used for derivatives?
The INREV Index cannot be used for derivatives, due to the Benchmarks Regulation (BMR) which entered into effect on 1 January 2018.
What type of data are the index results based on?
The Index results are based on fund level data that is provided to INREV directly by fund managers. INREV does not use publicly available information, and both members and non members of INREV can provide data for the Indices. Due to tight reporting deadlines, some data, e.g., quarterly NAV, might be provided on a provisional basis for a given quarter and will be finalised next quarter.
The Annual Index includes annually, bi-annually and quarterly valued vehicles.
The Quarterly Index includes only quarterly valued vehicles.
What happens when a member stops contributing data, would their fund data remain in the index?
Funds must deliver complete data since inception of the fund. If a member stops providing data for the index, it will no longer be included in the IRR index publication.
What is the frequency of data reported in this index?
IRR Annual index includes funds that are reported on a quarterly, semi-annual and annual basis.
IRR Quarterly index includes vehicles that are reported on a quarterly basis.
What are the confidentiality rules for this index?
Performance is shown only when the sample size includes at least three vehicles from three different managers. Quartiles and the interquartile range are displayed only when the sample size includes four or more vehicles. Performance is included only when a vehicle has at least one year of cash flows.
What is done regarding currency conversion when calculating returns?
To calculate aggregate returns, a local currency methodology is used. All figures that are reported in currencies other than the Euro are converted a single exchange rate – First day of the publication year for the IRR Annual Index and first day of the publication quarter for the IRR Quarterly index.
This ensure no currency effect is taking place at a fund level. Please note that the currency fluctuations that take place at property level are embedded in the fund reported values and outside scope of local currency conversion.
Does INREV collect historical data?
Funds must deliver complete data since inception of the fund. The Research and Market Information team can support and facilitate historical data collection. To provide data, please contact data@inrev.org.
When should we provide and update the data?
Annual-Data collection starts immediately after a year has ended for a period of up to 12 weeks.
Quarterly-Data collection starts immediately after a quarter has ended for a period of up to 6 weeks.
When was the Index launched and when are the results published?
The Annual Index was launched as a consultation release in May 2018 and is now published on the second Wednesday of May of each year.
The first IRR Quarterly Index was published in June 2018 and is now published 11 weeks after quarter end.
Are the IRRs quoted on a net or gross basis?
IRRs are quoted on a net basis.
What currency is required for data submission?
Financial data for the funds need to be reported in the reporting currency of the fund.
Latest publications and downloads
INREV Internal Rate of Return (IRR) Quarterly Index
Last updated on 05 Mar 2025
The IRR Index measures the since inception internal rate of return performance of European closed end non-listed real estate vehicles. Performance is measured net of fees and costs, and is computed on both a pooled return basis and an equally weighted basis.
Internal Rate of Return (IRR) Annual Index
Last updated on 26 Jul 2023
The IRR Index measures the since inception internal rate of return performance of European closed end non-listed real estate vehicles. Performance is measured net of fees and costs, and is computed on both a pooled return basis and an equally weighted basis.
INREV Index Guide 2019
Last updated on 21 Feb 2025
This guide provides a detailed overview of INREV’s suite of indices and their specific characteristics.