Swedish Commercial Property Offers Double Digit Return

Sweden's commercial property market offered double digit returns in 2010, at 10.4 per cent, according to the IPD Sweden Annual Property Index. The firm revealed that the return is comprised of five per cent capital growth and 5.2 per cent income return and reflects positive capital and rental value growth...

Sweden's commercial property market offered double digit returns in 2010, at 10.4 per cent, according to the IPD Sweden Annual Property Index.

The firm revealed that the return is comprised of five per cent capital growth and 5.2 per cent income return and reflects positive capital and rental value growth in all sectors and market segments, except industrials.

Indeed, it is the eighth double digit return recorded in the index's history and comfortably outperformed the 1.3 per cent return seen in 2009.

The news follows recent reports from a number of property consultancies which indicate that commercial markets around the world are continuing their return to growth.

In comparison to other assets in the country, direct property investments trailed equities and property equities but were ahead of bonds during 2010. Property equities had a strong year with a total return of 50 per cent, while equities returned 25 per cent.

- Thursday 10 March 2011

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