The European real estate industry is starting to feel the negative effects of the Covid-19 pandemic. The performance of unlisted funds in the first quarter this year was the lowest recorded in a three month period since the last quarter of 2012, data by the European Association for Investors in Non-Listed Real Estate Vehicles (Inrev) reveals.

Total real estate returns dropped to 0.22% in the first three months this year from 1.80% in the previous quarter, according to the Inrev Quarterly Index, which collected data from 329 institutional funds with a total gross asset value of €263.3bn. Meanwhile, distributed income fell from 1.43% to 0.68%.