<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
registrant's December 31, 1995 financial statements and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000823488
<NAME> VANGUARD REAL ESTATE FUND II
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             JAN-01-1995
<PERIOD-END>                               DEC-31-1995
<CASH>                                           5,954
<SECURITIES>                                     1,194
<RECEIVABLES>                                      380
<ALLOWANCES>                                         7
<INVENTORY>                                          0
<CURRENT-ASSETS>                                15,226
<PP&E>                                          14,192
<DEPRECIATION>                                   1,255
<TOTAL-ASSETS>                                  28,364
<CURRENT-LIABILITIES>                              695
<BONDS>                                          6,014
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        31,361
<OTHER-SE>                                    (11,616)
<TOTAL-LIABILITY-AND-EQUITY>                    28,364
<SALES>                                              0
<TOTAL-REVENUES>                                 5,161
<CGS>                                                0
<TOTAL-COSTS>                                    2,091
<OTHER-EXPENSES>                                   664
<LOSS-PROVISION>                               (1,636)
<INTEREST-EXPENSE>                               1,020
<INCOME-PRETAX>                                  3,446
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                              3,466
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     3,446
<EPS-PRIMARY>                                      .54
<EPS-DILUTED>                                      .54