Swedish residential property performance plummets, says IPD (SE)

IPD has released the results for its 2007 Swedish Residential Property Index. The Index saw a total return for 2007 of 9.4%, a massive 5.7% drop on the 2006 total return of 15.1%. The index underperformed the commercial property market, which returned 14.9% for the year, but outperformed Equities and Bonds in 2007, which returned -3.5% and 1.6% respectively.

The 2007 total return was driven by capital growth of 6.3% and an all time low income return of 2.9%.

Christina Gustafsson, Managing Director of IPD's services in the Nordic region, said "The Residential sector showed the weakest total returns in 2007 of all property sectors. With the lowest income return of all the sectors of 2.9%, residential properties have been most affected by the rising interest rates."

Click here to read the report.

Source: IPD

Related News