IPD has released the results for its 2007 Norwegian Annual Index. The Index saw a total return for 2007 of 18.3%. This return is the highest return since the start of the index in 2000, and constitutes an increase of 0.7% on the 2006 result. Property outperformed equities and bonds in 2007, which returned 11.5% and 3.9% respectively.
The All Property income return fell in 2007 to 5.8%. This compared to 6.7% in 2006 and was the lowest recorded income return in the IPD Norwegian Index. Whilst income return decreased, capital growth increased to 11.8%. The strong performance in 2007 took the three year total return to 17.0% y/y.
The Office sector was the top performing sector in 2007 with a total return of 18.7%, driven by an income return of 5.7% and capital growth of 12.4%. The Retail and Industrial sectors had total returns of 18.0% and 9.6% respectively. The weaker performance by the Industrial sector was mainly due to low capital growth over the year, of 3.3%.