Property funds post 13pc losses as office crunch arrives

Investors in unlisted property funds are finally feeling the pinch, with the turmoil across commercial property – hardest hit are office assets – sending total returns plunging to a 12.7 per cent loss last year, according to analysis by data house MSCI.

Capital growth went deeply into the red, returning negative 17.5 per cent for 2023, offset by rental income, which produced a positive 5.7 per cent return, according to an index of unlisted property funds.