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NCREIF Property Index Registers Four Quarters of Positive Returns
For the fourth consecutive quarter, the National Council of Real Estate Investment Fiduciaries’ NCREIF Property Index recorded positive returns for institutional real estate. The unleveraged quarterly return for the second quarter of 2025 was 1.23%, bringing the total return for the past four quarters to 4.31%.
The positive 1.23% quarterly total return consisted of 1.19% of income and 0.04% of property
appreciation. The slight gain in property appreciation during Q2 represented the third quarter of
market value increases after values dropped for nine consecutive quarters, according to NCREIF.
All property sectors produced positive total returns in Q2, although a couple of sectors saw decreases. Seniors housing led this quarter with a return of 2.08% followed by retail at 1.94% and self-storage at 1.62%.
Office returns dropped slightly from 0.85% in Q1 to 0.78% this quarter. Hotel returns dropped the most from 0.49% last quarter to 0.04% in Q2. Residential returns increased to 1.38% for Q2 from 1.28% in Q1.
The NPI includes 12,860 properties, totaling more than $900 billion in market value.
- ◦Sale/Acquisition
