| | | 2018 | | 2017 |
At the beginning of the year | | 127,432 | | 44,645 |
Transfer from investment property | | - | | - |
Investments | | 81,117 | | 28,662 |
Net gain (loss) from fair value adjustments on investment property under construction | 2,308 | | 54,125 | |
In profit or loss | | 2,308 | | 54,125 |
In other comprehensive income | | - | | - |
Transfer to investment property | | - | | - |
Transfers out of level 3 | | - | | - |
At the end of the year | | 210,857 | | 127,432 |
| | 2018 | 2017 |
Investment property under construction at fair value | 210,857 | 127,432 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 210,857 | 127,432 |
Investment property is not (re)developed within the Office Fund but via external parties or within Bouwinvest Office Development B.V. As at 31 December 2018 the investment property under construction relates to Hourglass, Building 1931 and Building 1962 (Amsterdam), and Central Park (Utrecht).
The net valuation gain (loss) for the year included a positive fair value adjustment of € 2,308 (2017: € 54,125) relating to investment property under construction that is measured at fair value at the end of the reporting period.
The investment property under construction is valued by external valuation experts.
Investments | 2018 | 2017 |
Amsterdam | 45,563 | 28,662 |
Utrecht | 35,554 | - |
Total investments | 81,117 | 28,662 |
The significant assumptions with regard to the valuations are set out below.
| | 2018 | 2017 |
Gross initial yield | 5.4% | 5.6% |
Net initial yield | 4.0% | 3.9% |
Long-term vacancy rate | 0.0% | 0.0% |
Average 10-year inflation rate (NRVT) | 0.5% | 0.5% |
Estimated average percentage of completion | 38.4% | N/A |
Current average rent (€/m²) | 336 | 359 |
Construction costs (€ per m²) | 4,121 | 4,005 |