In 2006 Special real estate funds in Germany represent more than EUR 19 billion assets in real estate. It is quite notably that the total return fell on average from 6.5% in 2001 to 2.8% in 2005. However, during the whole analysed period of 2001-2005 the income return remained at 5.4%, whereas capital growth declined and was even negative between 2003 and 2005. Yet investors, investment companies and the public domain do not yet have any access to performance data of special real estate funds. The paper intends to close this gap. It provides a thorough comparative analysis of special real estate fund performance in Germany and clarifies why this sector, despite the low performance, sees an increase in funds. All the relevant information about the special real estate funds was collected from the federal bulletin (Bundesanzeiger). Based on standardized methods an adjusted performance measurement was carried out. In total 56 special real estate funds were analysed during the time period of 2001-2005. After a brief review of special real estate funds industry the paper focuses on a) the typical construction of special real estate funds, b) the relevant performance measures, and c) statistical analysis of funds return, total return, and operating cost.