IPD has announced the consultative release of performance data from the new IPD CEE All Property Index. The Index, currently comprising properties in Hungary, Poland and the Czech Republic, saw a headline Euro-denominated total return for 2006 of 17.5%.
This return is the highest annual performance seen in the index's backhistory, and represents an increase of 1% over the 16.5% return in 2005. IPD's figures also show that the rate of increase in the region's capital values rose by 0.57% basis points between 2005 and in 2006 to 9.1%, whilst the income return also increased, from 7.3% in 2005 to 7.7% in 2006. Retail commercial property was the best-performing sector, returning 21.3%, followed by industrials at 20.3%. All IPD CEE All Property Index sectors showed an accelerating yield compression and flat rental value growth in 2006.
Property professionals are encouraged to contact IPD with any feedback, comments or questions regarding this consultative Index. Subject to feedback, IPD intends to produce 2007 figures for the Index early in the second quarter of 2008. Additionally, IPD will work towards incorporating other CEE emerging markets when possible.
IPD Associate Director Dr. Nassos Manginas is pleased that IPD has produced the first total return index for the CEE region: "Since its creation in 1985 IPD has been at the forefront of commercial property investment measurement. The size and quality of IPD's global databank of the property portfolio results of both national and multinational investors has allowed us to create this index; but we hope its arrival will encourage local CEE investors to join their international counterparts in contributing their data, allowing even better analysis in the future."