NCREIF: Property Appreciation Turns Positive for First Time Since 2022

Article originally posted on HERE on May 8, 2025

Property appreciation as measured in the NCREIF Property Index turned positive in 2025’s first quarter for the first time since Q2 2022, according to the National Council of Real Estate Investment Fiduciaries. In addition, all seven property types measured by NCREIF saw positive appreciation in Q1, including office.

The NPI, which measures 12,813 commercial properties valued at just under $900 billion, has now posted a positive total return for three consecutive quarters. Q1’s positive 1.29% quarterly total return consisted of 1.18% of income and 0.11% of property appreciation.

Results were more mixed for the NCREIF Fund Index – Open-end Diversified Core Equity (NFI-ODCE) index in Q1. The index’s total return gross of fees was 1.06%, down from 1.16% in the previous quarter, and up from -2.37% a year ago. The NFI-ODCE consists of 25 funds totaling $279 billion of gross real estate assets and $227.3 billion of net real estate assets.