The Swiss All Property total return for 2006 was 5.9%. This return is the highest posted over the past four years and constitutes an increase of 70 basis points on 2005. Property under-performed the equity market for the fourth year running, which returned 20.3% in 2006 although property did out-perform the bond market, which returned -0.1%.
The retail sector was the strongest sector with total returns of 7.7%, an improvement of 200 basis points on 2005. Mixed use and other commercial properties ranked joint second with returns of 6.5% in 2006, whilst the office market saw returns increase by 70 basis points with a return of 5.6%.
The weakest sector was residential properties, which represents 42.5% of the index, achieving total returns of 5.3%, unchanged from 2005.
Capital values rose by 1.1%, whilst income return fell marginally in 2006 to 4.8% from 5.0% in 2005.
The main driver behind the strong capital return was the compression of initial yields, which fell by approximately 10 basis points. Market rental value has seen considerable growth in 2006 and for the first time since the start of the index has seen growth above 1%. In 2006 market rental growth at the All Property level was up to 3.8% from -0.2% in 2005. All sectors apart from retail registered accelerating rental growth in 2006.
Associate Director of IPD, Dr. Nassos Manginas said, “We are happy to record further growth in the Swiss databank to more than 47 billion CHF. We are also pleased to have two non-Swiss participants indicating the internationalisation of real estate flows in this market”.
source : IPD Global
The retail sector was the strongest sector with total returns of 7.7%, an improvement of 200 basis points on 2005. Mixed use and other commercial properties ranked joint second with returns of 6.5% in 2006, whilst the office market saw returns increase by 70 basis points with a return of 5.6%.
The weakest sector was residential properties, which represents 42.5% of the index, achieving total returns of 5.3%, unchanged from 2005.
Capital values rose by 1.1%, whilst income return fell marginally in 2006 to 4.8% from 5.0% in 2005.
The main driver behind the strong capital return was the compression of initial yields, which fell by approximately 10 basis points. Market rental value has seen considerable growth in 2006 and for the first time since the start of the index has seen growth above 1%. In 2006 market rental growth at the All Property level was up to 3.8% from -0.2% in 2005. All sectors apart from retail registered accelerating rental growth in 2006.
Associate Director of IPD, Dr. Nassos Manginas said, “We are happy to record further growth in the Swiss databank to more than 47 billion CHF. We are also pleased to have two non-Swiss participants indicating the internationalisation of real estate flows in this market”.
source : IPD Global
Edmond de Rothschild Real Estate: plus besoin d’augmenter le capital de la SICAV suisse