13 Investment property under construction
| | | 2018 | | 2017 |
At the beginning of the year | | 11,941 | | 13,166 |
Investments | | 7,529 | | 14,764 |
Transfer to investment property | | (21,482) | | (14,076) |
Transfer from investment property | | 12,898 | | - |
Net gain (loss) from fair value adjustments on investment property under construction | 2,012 | | (1,913) | |
In profit or loss | | 2,012 | | (1,913) |
In other comprehensive income | | - | | - |
Transfers out of level 3 | | - | | - |
Total investment property under construction (level 3) | | 12,898 | | 11,941 |
Lease incentives | | - | | - |
At the end of the year | | 12,898 | | 11,941 |
Investment property under construction is not (re)developed within the Retail Fund but via external parties or Bouwinvest Retail Development B.V.
| | 2018 | 2017 |
Investment property under construction at fair value | 12,898 | 11,941 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 12,898 | 11,941 |
The investment property under construction is valued by external valuation experts.
Investments and investment property under construction | 2018 | 2017 |
Experience | - | - |
Convenience | 7,529 | 14,764 |
Other | - | - |
Total investments and investment property under construction | 7,529 | 14,764 |
Transfers to investment property | 2018 | 2017 |
Rosmalen (2017: Amsterdam) | (21,482) | (14,076) |
Total transfers to investment property | (21,482) | (14,076) |
The significant assumptions with regard to the valuations are set out below.
| | 2018 | 2017 |
Gross initial yield | 6.8% | 7.0% |
Net initial yield | 5.6% | 6.4% |
Long-term vacancy rate | 6.0% | 0.3% |
Average 10-years inflation rate (NRVT) | 0.5% | 0.5% |
Estimated average percentage of completion | 26.1% | 61.0% |
Current average rent (€/m²) | 208 | 228 |
Construction costs (€/m²) | 1,014 | 3,558 |