| | | 2018 | | 2017 |
At the beginning of the year | | 463,040 | | 353,078 |
Investments | | 423,175 | | 241,148 |
Transfers to investment property | | (406,226) | | (232,158) |
Net gain (loss) from fair value adjustments on investment property under construction | 78,715 | | 100,972 | |
In profit or loss | | 78,715 | | 100,972 |
In other comprehensive income | | - | | - |
Transfers out of level 3 | | - | | - |
At the end of the year | | 558,704 | | 463,040 |
The investment property under construction relate to acquisitions and is being developed by third parties. For a list of the investment properties under construction and investment commitments, see Note 20.
The net valuation gain (loss) for the year included a positive fair value adjustment of € 106,805 (2017: € 105,220) relating to investment properties under construction that are measured at fair value at the end of the reporting period.
The investment property under construction is valued by independent external appraisers.
| | 2018 | 2017 |
Investment property under construction at fair value | 558,704 | 463,040 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 558,704 | 463,040 |
The specifications of transfers from investments and the transfers to investment property are set out below.
Investments | 2018 | 2017 |
Randstad | 343,626 | 177,223 |
Mid East | 40,620 | 29,647 |
Brabantstad | 32,822 | 34,278 |
Non-core regions | 6,107 | - |
Total investments | 423,175 | 241,148 |
Transfers to investment property | 2018 | 2017 |
Randstad | (341,156) | 181,056 |
Mid East | (37,536) | 14,902 |
Brabantstad | (27,534) | 36,200 |
Non-core regions | - | - |
Total transfers to investment property | (406,226) | 232,158 |
The significant assumptions with regard to the valuations are set out below.
2018 | | | | |
| | Randstad | Mid East | Brabantstad | Total |
Gross initial yield | 4.4% | 4.7% | 4.6% | 4.4% |
Net initial yield | 3.8% | 3.8% | 3.9% | 3.8% |
Long-term growth rental rate | 2.5% | 2.5% | 2.4% | 2.5% |
Average 10-year inflation rate (NRVT) | 0.5% | 0.5% | 0.5% | 0.5% |
Estimated average development profit on completion | 12.9% | 6.9% | 13.5% | 12.5% |
Estimated average percentage of completion | 48.6% | 56.9% | 68.7% | 50.2% |
Current average rent per unit (in €) | 1,162 | 979 | 1,011 | 1,136 |
Construction costs (€/m²) | 3,635 | 2,139 | 2,515 | 3,411 |
2017 | | | | |
| | Randstad | Mid East | Brabantstad | Total |
Gross initial yield | 4.4% | 4.0% | 4.8% | 4.5% |
Net initial yield | 3.9% | 4.0% | 4.2% | 3.9% |
Long-term growth rental rate | 2.7% | 2.5% | 2.2% | 2.7% |
Average 10-year inflation rate (NRVT) | 0.5% | 0.5% | 0.5% | 0.5% |
Estimated average development profit on completion | 34.7% | 13.6% | 3.8% | 29.4% |
Estimated average percentage of completion | 64.4% | 50.1% | 44.0% | 60.9% |
Current average rent per unit (in €) | 1,311 | 906 | 891 | 1,218 |
Construction costs (€/m²) | 3,273 | 1,797 | 2,126 | 2,929 |