PRINCIPAL REAL ESTATE FUNC INC
N-8A, 1997-09-25
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                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM N-8A

                          NOTIFICATION OF REGISTRATION
                     FILED PURSUANT TO SECTION 8(a) OF THE
                         INVESTMENT COMPANY ACT OF 1940

     The  undersigned  investment  company  hereby  notifies the  Securities and
Exchange  Commission  that it registers  under and pursuant to the provisions of
Section 8(a) of the Investment  Company Act of 1940 and in connection  with such
notification of registration submits the following information:

Name:  Principal Real Estate Fund, Inc.

Address of principal business office (No. & Street, City, State, Zip Code):

                         The Principal Financial Group
                              Des Moines, Iowa 50392-200

Telephone number:   (515) 248-3842

Name and address of agent for service of process:

     Michael D. Roughton                     Copy to:
     The Principal Financial Group           John W. Blouch, Esq.
     Des Moines, Iowa 50392-0300             Suite 405 West
                                             1025 Thomas Jefferson Street, N.W.
                                             Washington, DC  20007-0805

Check appropriate box:

     Registrant is filing a Registration  Statement  pursuant to Section 8(b) of
the Investment Company Act of 1940 concurrently with the filing of Form N-8A:
YES  X    NO ____

     Pursuant to the  requirements  of the  Investment  Company Act of 1940, the
registrant has caused this notification of registration to be duly signed on its
behalf in the City of Des Moines and State of Iowa on the 22nd day of September,
1997.

                                               Signature 
                             Principal Real Estate Fund, Inc.
                                          (Name of Registrant)

                                             /s/ A. S. Filean
                             By ________________________________________________
                                  A. S. Filean, Vice President and Secretary


                /s/ E. H. Gillum
Attest:  __________________________________
         E. H. Gillum, Assistant Secretary


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