Global property returns were up for the fifth consecutive year in 2014 to a record 9.9%, according to the latest MSCI’s IPD Global Annual property Index.
The total return figure for 25 global property markets was the highest since 2007, with 20 countries showing increased momentum.
Irish markets performed the strongest of all markets, with a 40.1% total return in 2014. The UK maintained its strong performance with a 17.8% return.
In an indication that US markets were perhaps reaching their peak, the US return of 11.24% underperformed not just the UK and Ireland but also South Africa and New Zealand (12.1%).
Industrial was the best-performing sector globally, returning 13.65% for investors in 2014. Performing particularly strongly were the Czech Republic, Poland and Germany.
Retail and office space returned 10.1% and 9.5% respectively globally. Irish office space outperformed all other sectors, with more than 45% returns.
Global property returns (%)
| 2012 | 2013 | 2014 | |
|---|---|---|---|
| Australia | 9.43 | 9.20 | 10.63 |
| Austria | 6.17 | 5.82 | 5.31 |
| Belgium | 3.62 | 3.62 | 7.09 |
| Canada | 14.23 | 10.96 | 7.27 |
| Czech Republic | 4.76 | 3.97 | 4.36 |
| Denmark | 3.83 | 3.46 | 4.47 |
| Finland | 5.91 | 4.41 | 5.62 |
| France | 6.26 | 5.05 | 6.33 |
| Germany | 4.23 | 5.20 | 6.04 |
| Hungary | -1.71 | 2.12 | 3.62 |
| Ireland | 3.04 | 12.90 | 40.11 |
| Italy | 1.57 | 2.32 | 3.55 |
| Japan | 3.74 | 6.26 | 7.76 |
| Korea | 7.60 | 7.98 | 8.99 |
| Netherlands | 1.24 | 0.49 | 4.37 |
| New Zealand | 10.42 | 11.53 | 12.10 |
| Norway | 4.94 | 5.90 | 8.23 |
| Poland | 6.43 | 4.37 | 5.00 |
| Portugal | 0.77 | 1.26 | 7.15 |
| South Africa | 14.94 | 15.91 | 12.94 |
| Spain | -2.17 | 0.34 | 10.08 |
| Sweden | 6.48 | 6.80 | 8.08 |
| Switzerland | 6.81 | 6.06 | 5.26 |
| UK | 3.42 | 10.73 | 17.78 |
| United States | 10.74 | 11.31 | 11.24 |
