Nordic commercial property delivered capital growth of 2.8% in 2010, according to the IPD Nordic Annual Property Index, marking a return to positive growth after two years of capital depreciation.
Nordic commercial property delivered capital growth of 2.8% in 2010, according to the IPD Nordic Annual Property Index, marking a return to positive growth after two years of capital depreciation.
Based on local currencies, the growth is below the figures seen before the downturn in 2007, but shows a marked improvement on the -5.7% and -2.8% seen in 2008 and 2009. The recovery is in line with other European indices, indicating a stable recovery in 2010.
Income return suffered a slight 20 basis point decline, to 5.5%, leading to a total return of 8.5% for 2010, a solid improvement on the 2.8% total return recorded in 2009.
The four country constituent index is composed and weighted as follows: Sweden, 47.9%; Finland, 18.4%; Norway, 18.3% and Denmark, 15.5%. All four individual countries recorded positive capital growth, but there was considerable variation amongst them. Sweden delivered the strongest growth, of 5.0%, followed by Norway with 2.1%. Finland and Denmark trailed, recording 0.7% and 0.3% respectively.
