Direct Private Real Estate Returns

In the earlier part of the decade, the UK market had been one of the strongest performers but in a precipitous decline aided by the Brexit referendum result, the country recorded the lowest total return in the Global index at 3.9 percent in 2016.

Global vs. national market returns by country

Source: MSCI
Source: MSCI

In 2016, direct private real estate returns exhibited a decelerating trend with the total return for the MSCI Global Annual Property Index of 7.4 percent down around 330 basis points on the previous year. Sweden was the best performing market with a return of 13.9 percent. In the earlier part of the decade, the UK market had been one of the strongest performers but in a precipitous decline aided by the Brexit referendum result, the country recorded the lowest total return in the Global index at 3.9 percent in 2016. The Irish market continues to exhibit pronounced volatility and the biggest slowdown in 2016 but still registered the third highest return of 12.4 percent. The Netherlands was the only market to record a substantial performance improvement in 2016, increasing over 260 basis points to 10.3 percent.