EUROPE - Real estate measurement firm IPD, Investment Property Databank, has found 鈥渟ubstantial鈥� differences in the yields of investment property in Europe.
鈥淒espite a benign environment of low inflation and low interest rates across Europe, there are still substantial variations in the pricing of investment property,鈥� IPD stated.
IPD studied 12 European markets across the four main sectors: office, retail, industrial and residential. The results are based on IPD data covering 34,000 properties with a combined capital value of 鈧�425bn.
鈥淭he study should help investors who have long struggled with the lack of consistent data on property yields,鈥� IPD added. It pointed out that yields quoted by brokers and investors to capitalise rental incomes vary from country to country.
鈥淎s a result, investors often find it difficult to compare the level of these yields across national boundaries.鈥�
Within each sector, net income yields tended to be lowest in Germany, Ireland and Switzerland and highest in the Netherlands and Norway.
IPD said it has created a new standardised set of net and gross income yield measures in a bid to 鈥渃ut through all the different national definitions and improve market transparency鈥�.
In July IPD unveiled an 11-country pan-European index for consultation, based on IPD indices for Denmark, Norway, Sweden, France, Germany, Netherlands, Portugal, Spain, Ireland and the UK.
