Global

Foreign currency denominated returns in the MSCI UK Monthly Property Index made during the post-event troughs significantly outperformed a GBP-denominated investment over similar periods.

As of the end of the third quarter 2018, asset values were 25 percent higher than their pre-recession peak, according to the MSCI U.S. Quarterly Property Index.

The downturn for commercial real estate did not set in until later than for residential real estate but once it did, the shock to commercial markets was much more pronounced.

This chart compares the return performance of seven countries where MSCI has quarterly property indexes for the 12 months ending September 2018.

The exhibit compares unlevered asset performance from core open-ended funds in the MSCI database with opportunistic fund performance from Preqin Ltd.

Core open-end funds are one of the most popular avenues for institutional investment into real estate.

Halfway through 2018, the separation between industrial performance and the returns level of the other core sectors continues to be evident.

Most returns have softened since 2015 but the industrial sector has proved more resilient.

Currency movements can have a big impact on performance as this chart demonstrates.

Judged on their 2017 total return and five-year annualized performance, the world’s major cities do not stand out, for all their popularity with offshore investors.

This chart compares the 2017 total return performance of the 25 national markets in MSCI's IPD Global Annual Property Index.

In 2017, the picture is very different with most markets reporting higher total returns compared to the prior year. The positive momentum has been most pronounced in European markets like the UK, Hungary, the Czech Republic and Germany.