ANNUAL INDEX
Property investment sector in downturn
Industrial property is the top performer during the year with a total return of 13.6%
The IPD SA Annual Property Index shows SA’s listed and unlisted real estate achieved an ungeared total return of 11.1% in 2016. MSCI, a provider of investment-decision support tools worldwide, released the index on Thursday. The ungeared total return of 11.1% reflected a 190 basis-point decline from 13.0% in 2015 and the lowest recorded total return since 2009. The index, sponsored by Nedbank CIB, is based on asset-level data collected from a sample of 1,450 properties with a total capital value of R296.6bn at the end of 2016. This represented about two-thirds of professionally managed investment property in SA. "The index results show that the performance of the South African property investment sector continues to hold up well despite the prevailing low GDP-growth environment," said Robin Lockhart-Ross, managing executive of Nedbank CIB Property Finance. "Although at 11.1% the total return decreased from 13% in 2015, this is hardly surprising in that commercial property returns wi...
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