Investment Property Databank (IPD) has launched transaction-linked indices (TLIs) for the main European markets in a move to better identify the volatility and inherent risk present in European real estate.
Investment Property Databank (IPD) has launched transaction-linked indices (TLIs) for the main European markets in a move to better identify the volatility and inherent risk present in European real estate.
Over the last few years, IPD has developed these indices using a hybrid methodology of transaction information and valuation data.
IPD's co-founding director Ian Cullen said: 'Regulators, central banks and end investors have all centralised the estimation of major downside risks in their evaluation of real estate investment. IPD’s new transaction-linked indices are designed to document these risks in a prudent and comprehensive way which has not been possible in the past'.
The new indices are not intended as alternatives to the conventional IPD valuation-based indices (VBIs), IPD said. The low liquidity of commercial real estate investment markets means that for most market tracking and performance assessment purposes, valuation-based measures will remain essential.
However, TLIs have a crucial supporting role to fulfil in that the relationship of valuations to sale price movements can be factored into market analysis.
The new TLIs extend across the following European markets and regions:
Denmark
France
Germany
Ireland
Netherlands
Norway
Sweden
Switzerland
UK
Southern Europe (Italy, Portugal and Spain)
Eurozone
European Union
Pan Europe
