The IPD residential index’s first annual results confirm the sector’s outperformance of commercial property and other asset classes over the year to December 2001.
At a meeting on Tuesday in Londons Stationers Hall, IPD joint managing director Ian Cullen unveiled the findings, which are based on the performance of £682.7m of property belonging to twelve residential funds.
For the year to December 2001, residential property produced a total return to investors of 17.1%. This compared with a commercial property return of 6.7%, equities return of -13.2% while gilts produced 3.2% and cash 5.5%.
Cullen said: “This index has been a long time in the coming. I believe it will improve the transparency of the residential investment market and therefore help to increase institutional residential investment in this country.”
EGi News 21/05/02
