The IPD Nordic index states strong performance across the Nordic region in 2006 with a total return of 15.6% in local currencies. The total return in local currencies was stronger than the return in Sterling at 14.8%, but slightly weaker than Euros at 17.1%. The
continued depreciation of the US dollar meant that the Nordic return in this currency was significantly higher at 30.9%.
According to data from Handelsbanken, the IPD total return on property in Euros (17.1%) was ahead of bonds at 5.3%, but underperformed equities (27.9%) and real estate equities (44.8%) in the Nordic region.
The total return in local currencies for 2006 is ahead of the 3, 5 and 7 year returns on the Nordic index. The outperformance in 2006 can be broken down into 5.8% income return and 9.3% capital growth.
In local currencies, the best performing country in the Nordic region was Denmark with a total return of 17.8%, followed closely by Norway at 17.6%. The return for Sweden was 16.2% and Finland trailed behind with a return of 10.1%.
However, when looking at returns in Euros, Sweden had the best performance due to currency movements with a return of 20.9%. Denmark returned 17.9%, the return for
Norway was 14.4% and Finland, the only Nordic country to be a member of the Euro, remained in last place at 10.1%.
Source: IPD
