**NCREIF Property Index Registers Four Consecutive Quarters of Growth**
For the fourth straight quarter, the NCREIF Property Index (NPI), published by the National Council of Real Estate Investment Fiduciaries, has recorded positive returns for institutional real estate investors.
In the second quarter of 2025, the unleveraged total return was 1.23%. This comprised 1.19% from income and a modest 0.04% from property appreciation. The rise in property values during Q2 marks the third consecutive quarter of growth, following a period of nine quarters marked by declining market values.
All property sectors generated positive total returns in Q2. Leading the way was the seniors housing sector with a return of 2.08%, followed closely by retail at 1.94% and self-storage at 1.62%.
Office sector returns dipped slightly from 0.85% in Q1 to 0.78% in Q2. The hotel sector experienced the most significant decline, falling from 0.49% in Q1 to just 0.04% in Q2. In contrast, residential sector returns improved to 1.38%, up from 1.28% in the previous quarter.
The NPI now includes 12,860 properties, representing more than $900 billion in total market value.
This continued positive performance across four quarters provides encouraging signs for real estate investors and reflects a broader stabilization in commercial property markets.
