MSCI has launched the MSCI Global Quarterly Property Index (GQPI). The index, which was launched on July 14, is the first index to track the property-level performance of quarterly-valued assets across some of the world’s major real estate markets.
The index tracks the performance of over 20,000 property investments in 26 countries including 17 countries that now have quarterly-valued property asset data. The history of the new index will date back to December 2007.
Among the 26 countries, the index includes real estate markets such as Singapore, Australia, Canada, France, Germany, Japan, South Korea, the UK, the US, as well as Norway, Sweden and Denmark.
According to MSCI, the recent performance of the assets in the index shows that the returns of global real estate accelerated to 17.8% on a 12-month rolling basis in the first quarter of 2022.
“While still strong in comparison to their historical context, the three-month rate of return of 4.4% decelerated from the record high 5% rate in Q4 2021, which had coincided with a market bounce back from Covid-19 weakness,” says MSCI in its statement on July 14.
To be sure, only Central and Eastern Europe, the Nordic region, Ireland and Germany saw returns accelerate on a three-month basis in the 1Q2022. All other countries in the index saw the three-month rate of return slow, with some of those with the most marked slowdowns having particularly strong ends to 2021.
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“This launch will help investors as they monitor and manage international portfolios, particularly in the context of the growing headwinds of geopolitical tensions and the associated rising inflation and interest rates,” says MSCI in its statement on July 14.
Rene Veerman, global head of real assets at MSCI, says, “Until now, investors only had access to quarterly property-level indexes for a few of the larger, more transparent markets, but the ongoing economic environment and market conditions as we come out of the pandemic have made clear the importance of timely property-level indicators to understand how real estate markets are responding.”
He adds: “Whilst MSCI’s existing range of indexes in these markets provide deep and granular data on longer-term returns and drivers, these new quarterly indexes provide more comprehensive and regular performance data for a more precise reflection of risk in Global and European markets, which often have lower frequency valuation practices across market participants.”
