<PAGE> PAGE 1
000 A000000 04/30/99
000 C000000 0001046029
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 PRINCIPAL REAL ESTATE FUND, INC.
001 B000000 811-08379
001 C000000 5152475476
002 A000000 PRINCIPAL FINANCIAL GROUP
002 B000000 DES MOINES
002 C000000 IA
002 D010000 50392
002 D020000 0200
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
018 000000 Y
019 A000000 Y
019 B000000 44
019 C000000 PRINCORGRP
020 A000001 MORGAN, J.P. SECURITIES
020 B000001 13-3224016
020 C000001 7
020 A000002 MERRILL LYNCH
020 B000002 13-5674085
020 C000002 5
020 A000003 PAINE WEBBER INC.
020 B000003 13-2638166
020 C000003 2
020 A000004 SALOMON BROTHERS, SMITH BARNEY
020 B000004 13-3082694
020 C000004 1
020 A000005 A.G. EDWARDS
020 B000005 43-0895447
020 C000005 1
020 A000006 GREEN STREET, INC.
020 B000006 33-0275837
020 C000006 1
020 A000007 LEHMAN BROTHERS
020 B000007 13-2501865
020 C000007 1
020 A000008 DONALDSON, LUFKIN & JENRETTE (DLJ)
020 B000008 13-2741729
020 C000008 1
<PAGE> PAGE 2
020 A000009 BEAR STEARNS & CO.
020 B000009 13-3299429
020 C000009 1
020 A000010 PURDENTIAL SECURITIES, INC.
020 B000010 22-2347336
020 C000010 0
021 000000 20
022 A000001 FIRST CHICAGO CAPITAL MARKETS
022 B000001 36-3595942
022 C000001 61451
022 D000001 0
022 A000002 ASSOCIATES CORPORATION OF NORTH AMERICA
022 B000002 74-1494554
022 C000002 614
022 D000002 0
022 C000003 0
022 D000003 0
022 C000004 0
022 D000004 0
022 C000005 0
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 62065
023 D000000 0
024 000000 N
027 000000 Y
028 A010000 308
028 A020000 0
028 A030000 0
028 A040000 36
028 B010000 445
028 B020000 126
028 B030000 0
028 B040000 146
028 C010000 269
028 C020000 0
028 C030000 0
028 C040000 142
028 D010000 279
028 D020000 0
028 D030000 0
028 D040000 117
<PAGE> PAGE 3
028 E010000 285
028 E020000 100
028 E030000 0
028 E040000 177
028 F010000 270
028 F020000 0
028 F030000 0
028 F040000 91
028 G010000 1856
028 G020000 226
028 G030000 0
028 G040000 709
028 H000000 904
029 000000 Y
030 A000000 28
030 B000000 4.75
030 C000000 0.00
031 A000000 8
031 B000000 0
032 000000 2
033 000000 18
034 000000 Y
035 000000 2
036 A000000 N
036 B000000 0
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 28
044 000000 0
055 A000000 N
055 B000000 N
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
<PAGE> PAGE 4
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
071 A000000 5123
071 B000000 3424
071 C000000 11494
071 D000000 30
072 A000000 6
072 B000000 13
072 C000000 344
072 D000000 0
072 E000000 0
072 F000000 55
072 G000000 0
072 H000000 0
072 I000000 39
072 J000000 1
072 K000000 0
072 L000000 0
072 M000000 2
072 N000000 9
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 1
072 S000000 1
072 T000000 28
072 U000000 0
072 V000000 0
072 W000000 2
072 X000000 138
072 Y000000 0
072 Z000000 219
072AA000000 0
072BB000000 617
072CC010000 1015
072CC020000 0
072DD010000 117
072DD020000 111
<PAGE> PAGE 5
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 10
074 B000000 0
074 C000000 71
074 D000000 0
074 E000000 0
074 F000000 13180
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 28
074 M000000 11
074 N000000 13300
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 0
074 S000000 0
074 T000000 13300
074 U010000 776
074 U020000 765
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 1460
074 Y000000 0
075 A000000 0
075 B000000 12152
076 000000 0.00
077 A000000 N
SIGNATURE A. S. FILEAN
TITLE V. PRES. & SECRETARY
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 13,631,246
<INVESTMENTS-AT-VALUE> 13,251,144
<RECEIVABLES> 28,043
<ASSETS-OTHER> 10,692
<OTHER-ITEMS-ASSETS> 9,981
<TOTAL-ASSETS> 13,299,860
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 193
<TOTAL-LIABILITIES> 193
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,882,750
<SHARES-COMMON-STOCK> 775,874
<SHARES-COMMON-PRIOR> 654,401
<ACCUMULATED-NII-CURRENT> 27,003
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,229,984)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (380,102)
<NET-ASSETS> 13,299,667
<DIVIDEND-INCOME> 344,256
<INTEREST-INCOME> 12,930
<OTHER-INCOME> 0
<EXPENSES-NET> (137,891)
<NET-INVESTMENT-INCOME> 219,295
<REALIZED-GAINS-CURRENT> (628,976)
<APPREC-INCREASE-CURRENT> 1,015,205
<NET-CHANGE-FROM-OPS> 617,623
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (116,561)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 154,085
<NUMBER-OF-SHARES-REDEEMED> (46,852)
<SHARES-REINVESTED> 14,240
<NET-CHANGE-IN-ASSETS> 1,761,930
<ACCUMULATED-NII-PRIOR> 35,698
<ACCUMULATED-GAINS-PRIOR> (613,107)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 54,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 137,891
<AVERAGE-NET-ASSETS> 12,094,995
<PER-SHARE-NAV-BEGIN> 8.39
<PER-SHARE-NII> .16
<PER-SHARE-GAIN-APPREC> .24
<PER-SHARE-DIVIDEND> (.16)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.63
<EXPENSE-RATIO> 2.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 13,631,246
<INVESTMENTS-AT-VALUE> 13,251,144
<RECEIVABLES> 28,043
<ASSETS-OTHER> 10,692
<OTHER-ITEMS-ASSETS> 9,981
<TOTAL-ASSETS> 13,299,860
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 193
<TOTAL-LIABILITIES> 193
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,882,750
<SHARES-COMMON-STOCK> 396,901
<SHARES-COMMON-PRIOR> 372,195
<ACCUMULATED-NII-CURRENT> 27,003
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,229,984)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (380,102)
<NET-ASSETS> 13,299,667
<DIVIDEND-INCOME> 344,256
<INTEREST-INCOME> 12,930
<OTHER-INCOME> 0
<EXPENSES-NET> (137,891)
<NET-INVESTMENT-INCOME> 219,295
<REALIZED-GAINS-CURRENT> (628,976)
<APPREC-INCREASE-CURRENT> 1,015,205
<NET-CHANGE-FROM-OPS> 617,623
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (53,335)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33,815
<NUMBER-OF-SHARES-REDEEMED> (15,750)
<SHARES-REINVESTED> 6,641
<NET-CHANGE-IN-ASSETS> 1,761,930
<ACCUMULATED-NII-PRIOR> 35,698
<ACCUMULATED-GAINS-PRIOR> (613,107)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 54,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 137,891
<AVERAGE-NET-ASSETS> 12,094,995
<PER-SHARE-NAV-BEGIN> 8.38
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> .25
<PER-SHARE-DIVIDEND> (.14)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.61
<EXPENSE-RATIO> 2.89
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 13,631,246
<INVESTMENTS-AT-VALUE> 13,251,144
<RECEIVABLES> 28,043
<ASSETS-OTHER> 10,692
<OTHER-ITEMS-ASSETS> 9,981
<TOTAL-ASSETS> 13,299,860
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 193
<TOTAL-LIABILITIES> 193
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,882,750
<SHARES-COMMON-STOCK> 368,426
<SHARES-COMMON-PRIOR> 348,440
<ACCUMULATED-NII-CURRENT> 27,003
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,229,984)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (380,102)
<NET-ASSETS> 13,299,667
<DIVIDEND-INCOME> 344,256
<INTEREST-INCOME> 12,930
<OTHER-INCOME> 0
<EXPENSES-NET> (137,891)
<NET-INVESTMENT-INCOME> 219,295
<REALIZED-GAINS-CURRENT> (628,976)
<APPREC-INCREASE-CURRENT> 1,015,205
<NET-CHANGE-FROM-OPS> 617,623
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (58,094)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 36,598
<NUMBER-OF-SHARES-REDEEMED> (23,841)
<SHARES-REINVESTED> 7,229
<NET-CHANGE-IN-ASSETS> 1,761,930
<ACCUMULATED-NII-PRIOR> 35,698
<ACCUMULATED-GAINS-PRIOR> (613,107)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 54,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 137,891
<AVERAGE-NET-ASSETS> 12,094,995
<PER-SHARE-NAV-BEGIN> 8.40
<PER-SHARE-NII> .15
<PER-SHARE-GAIN-APPREC> .25
<PER-SHARE-DIVIDEND> (.16)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.64
<EXPENSE-RATIO> 2.17
</TABLE>
