GPR 250 Europe Index keeps downward trend in June

European real estate stocks ended in negative territory for the fourth month in a row in June, according to both the GPR 250 Europe Index and the EPRA/NAREIT Europe Index. Global Property Research (GPR) reported an overall index dip of 12% in June, representing a sharp drop from the -4.1% return reported in May and the 0.7% decline reported in April 2008.

At a national level, there were no countries generating positive returns last month but Switzerland, Greece, Belgium, Italy and the UK performed better than the European average, with returns of -3.1%, -5.0%, -6.2%, -9.2% respectively. The performance dropped in Austria (-12.0%), the Netherlands (-12.4%), Finland (-12.8%), France (-13.5%), Turkey (-13.9%), Sweden (-15.2%), Germany (-16.3%), and Poland (-19.0%). The worst performing country was Norway with -32.3%.

The EPRA/NAREIT Europe Index also showed a steep fall with returns of -12.2% in June. EPRA/NAREIT Sweden was the heaviest hit of the major countries (-15.9%). European heavyweight EPRA/NAREIT UK fell 10.8% while the Netherlands lost 11.9%. EPRA/NAREIT France dropped 13.3%. In the year to date, both France and the Netherlands now have losses of 9.1% and -5.7% respectively. The UK market is 21% in the red, followed by Sweden with a loss of 20.3%.

Europe's 36-month volatility is 16%, the lowest of the three regions covered by EPRA (North America, Asia Pacific and Europe).