Over the last few years IPD has been developing a hybrid index methodology which couples transaction information with standard IPD valuation data to give a more complete measure of the volatility of, and thus risk inherent in, property investment markets.

It is important to understand that these new transaction linked indices (TLIs) are not proposed as alternatives to the conventional IPD valuation based indices (VBIs). The low liquidity of commercial real estate investment markets will always mean that for most market tracking and performance assessment purposes valuation based measures will remain essential. VBIs do a good job of tracking performance and cyclical patterns in the mature investment markets worldwide.

The low liquidity of these markets, however, means that the added risk of trading heterogeneous and generally large assets can be understated without factoring valuation to sale price movements into the analysis. This is the primary and crucial supporting role that the new TLIs are designed to fulfil.

To date this work extends across the following European markets and regions:

• Denmark
• France
• Germany
• Ireland
• Netherlands
• Norway
• Sweden
• Switzerland
• UK
• Southern Europe (Italy, Portugal and Spain)
• Eurozone
• European Union
• Pan Europe

A report of the methodology and indicators available to date has now been loaded on our website for consultation and review.

Download the IPD Quarterly Property Price Indicators report and the full technical documentation.

IPD welcome consultation on the content and reporting of this new set of indicators.

Please contact:
 
Mark Clacy-Jones, Head of Indices, IPD, mark.clacy-jones@ipd.com
Dr Ian Cullen, Co-Founding Director, IPD, ian.cullen@ipd.com

Read the IPD Transaction Linked Indices press release

Download the full IPD Solvency II Review

Download the IPD European Transaction Linked Indices presentation