Commercial Property Price Index
Pan-European Commercial Property Price Index
2020 Ends on a High
London, 11 January 2021 - The Green Street Commercial Property Price Index increased by 1.6% this past quarter. The index, which measures pricing of a broad swathe of Pan-European commercial properties, was down only 2.1% on the year. Property price changes varied dramatically across sectors. Industrial values increased over 15% in 2020 while retail values declined ~20%. Residential values, a new addition to the index this quarter, finished the year a nudge higher, while office values experienced a slight decline.
“Property prices end the year in much better shape than many expected at the onset of the Covid pandemic – down roughly 2% on average in 2020,” said Peter Papadakos, Managing Director at Green Street. “Substantial government fiscal and monetary support, as well as record low interest rates helped support asset values. Investor’s demand for industrial real estate was insatiable in 2020 and helped offset steep declines in retail values. Historically low corporate bond and 10-year government rates provide a favourable outlook for real estate pricing in 2021.”
Green Street Commercial Property Price Index
Indexed to 100 in August 2007
Indexed to 100 in September 2007Download CPPI Report Download CPPI Data
Core Sector Average is equally-weighted between the Industrial, Office, Residential, and Retail sectors.
Change in Commercial Property Values
Amount property values have increased over this period
(as of 1/11/2021)
What makes our commercial property price index unique?
There are significant differences between the Green Street CPPI and other indices that track commercial property prices. Green Street's CPPI is appraisal-based. Appraisal-based indices are only as good as the valuation estimates used to construct them, and Green Street has long devoted sizable resources to deriving accurate estimates of the values of the properties owned by REITs. Most other indices are transaction-based.
Green Street's Pan-European Real Estate Analytics platform covers 25 of the most liquid European real estate markets across the industrial, office, retail, and residential property sectors. The Commercial Property Price Index is a time series of unleveraged property values across these sectors and markets, and captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on average institutional quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.