| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Property Last Updated: May 12, 2011 - 10:08 AM


Europe wide commercial property in local currency returned 8.0% in 2010
By Finfacts Team
May 11, 2011 - 5:43 AM

Email this article
 Printer friendly page

Europe wide commercial property, as measured in local currency, returned 8.0% in 2010, according to the IPD Pan-European Annual Index.

The results, announced by Peter Hobbs, Head of Business Development at IPD represent a significant improvement on the 1.4% recorded in 2009. 2010 marks the completion of a full ten year history for the €1.5trillion Pan-European index, which has recorded a ten year total return of 6.1%.

Hobbs said: "Most importantly, 2010 saw a return to capital growth after two years of decline, at 2.2%. However, the value rise was more a case of re-pricing, and improving investor sentiment, as opposed to occupier demand, driven almost entirely as it was by yield compression, while rental value growth remained weak across most markets."

Hobbs continued: "The range in returns across the continent, while not as much as in recent years, is interesting due to the variations in the composition: about half of the 17 markets reported saw a return to positive capital growth in 2010, and there was a very strong relative performance of France, Sweden and the UK.

"It is worth noting however, that no European market’s 2010 recovery even approaches a return to the peak value levels seen before the downturn."

"The volatility of certain markets, such as Ireland, the UK and Spain, and the relative stability of others, notably Germany and Switzerland, shows an interesting comparison of the types of potential investment market across Europe. They present choices in terms of portfolio construction, with the more volatile markets offering potentially higher returns for the less risk averse investor."

The top six markets in the index - - Germany, the UK, France, Switzerland, Netherlands and Sweden -  - account for almost 75% of the market share, and the strong relative performance of the index was driven to a large extent by the UK. Accounting for 20% of European commercial property, the UK alone contributed 290 basis points to the total return figure. While France also made a significant contribution to returns, of 1.5%, the slow German performance acted as a drag on returns.

At the sector level, Offices and Retails dominated the Index, accounting for 42% and 30% respectively, with Retails delivering a robust return of 10.1%, while Offices lagged behind with returns of 7.3%. Industrial properties, though making up a far smaller section of the market, only 7%, also delivered a strong return of 7.6%.

There was a huge variation in sector returns between countries, though Retails came out generally on top.

Hobbs concluded: "While local currency returns were 8%, it is important to look at the returns in different currency denominations. 2010 was a weak year for the Euro, thus a Euro denominated investor experienced enhanced levels of return (to 11.2%). In contrast, yen denominated investor returns suffered (down to -9.5%) as the Japanese currency appreciated by nearly 20%.

"These currency impacts are significant, and they vary dramatically over time. In terms of GPB returns, for instance, the stronger pound in 2010 had a slightly negative impact and this was more dramatic in 2009, but the year before, 2008, the weak pound boosted sterling denominated investors."

Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Property
Latest Headlines
Irish and UK commercial property markets strengthen in 2014
Irish construction PMI highest since 2006 - number of firms polled withheld
Irish Residential Property Prices: Government wants higher prices
Switzerland reaches for the skies – despite protests
NAMA sells complete Northern Ireland loan portfolio that had par of £4.5bn
Irish House Prices 2014: Daft.ie says prices ex-Dublin up in Q1; MyHome.ie says prices slightly fell
Irish home mortgage approvals in 2014 at 42-year low
Irish House Prices 2014: National prices up 8.1% in year to February
Irish House Rents: Dublin rents up 2.1% in Q4 2013; Down 0.9% ex-Dublin
Irish construction PMI rises from low base; Number of firms polled low
Irish mortgages in arrears 360 days+ at 60,422 - 7.9% of total accounts
Irish House Prices 2014: National annual rise at 6.3% in January; Dublin prices fell to 13.6% increase
Number of Irish home mortgages issued in 2013 fell to a 40-year low
Dublin house sales at 10,000 in 2013; 246 sales at €1m+; Lowest at €6k
London office rents remain world's highest; Dublin at 25th of 67 locations
Irish commercial property returns rose to 12.7% in 2013
Irish House Rents: Up 7.1% in Q4 2013 year-on-year nationally; Dublin rise at 11.2%
Irish Economy 2014: Construction PMI up sharply; Caution on small sample
Irish House Prices 2013: Dublin prices rose 15.7% in year; National prices up 6.4%
Dublin second-hand house prices rose by 17.7% in 2013
UK commercial property returned 10.9% in 2013
Ireland is one of 'hottest' hotspots for European commercial property deals
Irish construction activity rises again in December
Irish industrial property market back at 2007 levels; Blackstone and Google in Dublin office deals
Irish House Prices: Asking prices in Dublin commuter counties stabilised in 2013
Irish House Prices 2014: Dublin main challenge as asking price gulf surges to 28%
Irish House Rents: Average rent in Dublin in Q3 2013 was €1,041
Irish construction PMI in sharp rise; Firm sample likely small
Irish mortgage arrears less than 90 days fall and over rise
Irish House Prices up 15% in Dublin; Mortgages issued at 1974 level
UK taxpayers providing £5bn a year subsidy to buy-to-let landlords
Irish ghost estates to be demolished; Arrears activist group agree pilot scheme with AIB
Irish mortgage affordability index shows rise for Dublin first time buyers
Commercial property outlook improves in Ireland and Spain
Where have all the empty Irish houses gone?
Irish mortgage drawdowns rose in Q3 2013 but remain at 39-year low
Irish House Rents: Nationwide year-on-year rise at 4.8% in Q3 2013
Irish construction PMI in sharp rise; Small sample and no jobs added
75% of 83,000 Irish residential mortgages in arrears of 90 days+ not restructured
Irish home mortgage approvals in September 2013 at 39-year low