Global Private Real Estate Total Returns

The MSCI Global Annual Property Index found that commercial real estate achieved a total return of 7.4 percent in 2018.
Source: MSCI Global Annual Property Index

The MSCI Global Annual Property Index tracks more than $1.5 trillion worth of private real estate across 25 national markets, providing a comprehensive overview of global real estate investment performance. With the release of the latest market results at the end of April, we saw that global commercial real estate achieved a 7.4 percent total return in 2018. This is down slightly from the the 7.9 percent return achieved in 2017 but it also marks the ninth consecutive  total return since the global financial crisis. Across the constituent national markets, momentum was mixed, with some countries showing positive momentum and others slipping. One common trend across a number of markets was industrial strength vs. retail weakness, as the industrial sector outperformed the retail sector in all but four countries.

Insights and data provided are by MSCI Real Estate, a leading provider of real estate investment tools. A vice president in MSCI’s global real estate research team, Bryan Reid focuses on performance measurement, portfolio management and risk related research for asset owners and investment managers. Based in Sydney, he covers APAC as well as global markets.