German returns in 2014 highest on record

MSCI, the owners of International Property Databank, has released the latest IPD German Annual Property Index for 2014, which shows the highest total returns since the index began.

The IPD German Annual Property Index returned 6.0% in 2014, up from 5.2% in 2013, delivering the highest recorded return since IPD records began in 1996 with total returns in all market sectors performing above the 5, 10 and 15 year average.

Total returns on Industrial (12.2%), Residential (7.9%) and Retail (7.2%) all outperformed the index with only office properties underperforming at 4.2%.

Prof. Justus Vollrath, Executive Director at MSCI in Germany commented, “The results of the 2014 IPD Annual German Property Index show that growth was experienced across all sectors, albeit at differing levels. Industrial showed the strongest Capital Value Growth, and entered positive territory for the first time since 2001.”

The IPD Germany Annual Property Index measures ungeared total returns to directly held standing property investments from one open market valuation to the next. The index tracks performance of 2,235 property investments, with a total capital value of €52.1 billion as at December 2014. The market coverage is estimated to be around 20% - 30%, with results dating back to 1995 but with additional data available from 1989.