However, the figure remains positive and higher than the performance observed during the financial crisis of 2008, MSCI has reported.

The negative capital return of -1.47% from falling asset values explains this drop in investment performance, which was underpinned by a +3.37% income return.

Carine Dassé, executive director at MSCI, said: 'In this context of crisis and the rise in risk-free interest rates, healthcare real estate is the sector that has shown the most resilience with an overall return up to 10.1%, supported by growth in value and income.

'Hotels come just after with an overall total return of 7.1% thanks to the rise in income growth and a positive capital growth. They are followed by residential with a positive performance as well.'

Conversely, the most affected sector is industrial which, after the record performances of the last five years, has seen a sharp adjustment in market values, with a -5.3% capital growth.

The performance of offices and retail remains positive but penalised by a negative capital growth.

Office capital values are stable in Paris Central Business District for the first time since the last financial crisis and down in all other locations. Offices located in the Western Crescent - La Défense and in the inner suburbs remain the most affected with capital growth of -5.5% and -8.5% respectively.

Over a period of 25 years, real estate has posted an average performance of 8.3% per year, with a more diverse performance between sectors since the 2008 financial crisis and latest crisis.

With information collected on more than 7,000 real estate assets and on all sectors (retail, residential, offices, health, hotel, logistics), the coverage of the MSCI France Annual Property index increased by €12 bn in 2022 to reach a record value of €217 bn in December 2022, reflecting the continued interest of investors in the real estate asset class.