See accounting policy D.
| | 2024 | 2023 |
|---|---|---|
| At 1 January | 3,051 | 664 |
| Changes in value of investments, realised/unrealised gains and losses: | | |
| - Fair value gains and losses | 226 | -65 |
| Purchases | 246 | 79 |
| Disposals | -159 | -36 |
| Changes in the composition of the group | - | 2,409 |
| | | |
| At 31 December | 3,364 | 3,051 |
Purchases in 2024 mainly relates to residential (€ 126 million) and offices (€ 117 million). Disposals relates to residential (€ -159 million). In 2023, changes in the composition of the Group related to the investment property acquired through the acquisition of Aegon NL, see section 7.4.5.
Investment property is leased to third parties and is diversified over the rural, residential, offices and retail sectors and over property under development in the Netherlands. The significant inputs are the net initial yield and market rental value. For more information see section 7.7.1.
Rental income is recognised as direct investment income. In 2024, rentals amounted to € 144 million (2023: € 91 million). The rental income has increased due to the acquisition of Aegon NL.
Direct operating expenses arising from investment property amounted to € 52 million (2023: € 29 million). Given the overall low vacancy rate, virtually all direct operating expenses relate to investment properties generating rental income. Direct operating expenses of investment property are classified as operating and other expenses within the investment operating expenses.
Investment property consists mainly of assets expected to be recovered after more than one year after the balance sheet date.