| | | 2017 | | 2016 |
At the beginning of the year | | 353,078 | | 205,579 |
Investments | | 241,148 | | 300,192 |
Transfers to investment property | | (232,158) | | (192,026) |
Net gain (loss) from fair value adjustments on investment property under construction | 100,972 | | 39,333 | |
In profit or loss | | 100,972 | | 39,333 |
In other comprehensive income | | - | | - |
Transfers out of level 3 | | - | | - |
At the end of the year | | 463,040 | | 353,078 |
The property under construction 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 € 105,220 (2016: € 59,889) 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.
| | 2017 | 2016 |
Investment property under construction at fair value | 463,040 | 353,078 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 463,040 | 353,078 |
The specifications of transfers from investments and the transfers to investment property are set out below.
Investments | 2017 | 2016 |
Randstad | 177,223 | 231,436 |
Mid East | 29,647 | 21,062 |
Brabantstad | 34,278 | 42,213 |
Non-core regions | - | 5,481 |
Total investments | 241,148 | 300,192 |
Transfers to investment property | 2017 | 2016 |
Randstad | 181,056 | 170,173 |
Mid East | 14,902 | 14,890 |
Brabantstad | 36,200 | - |
Non-core regions | - | 6,963 |
Total transfers to investment property | 232,158 | 192,026 |
The significant assumptions with regard to the valuations are set out below.
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 (IPD Nederland) | 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 |
2016 | | | | |
| | Randstad | Mid East | Brabantstad | Total |
Gross initial yield | 4.8% | 4.9% | 5.4% | 4.9% |
Net initial yield | 4.2% | 4.2% | 4.6% | 4.3% |
Long-term growth rental rate | 2.7% | 2.3% | 2.1% | 2.6% |
Average 10-year inflation rate (IPD Nederland) | 1.0% | 1.0% | 1.0% | 1.0% |
Estimated average development profit on completion | 20.3% | (0.6)% | 7.6% | 17.7% |
Estimated average percentage of completion | 54.9% | 63.2% | 66.7% | 57.2% |
Current average rent per unit (in €) | 1,155 | 1,060 | 885 | 1,095 |
Construction costs (€/m²) | 3,298 | 2,636 | 2,126 | 2,993 |