Global

French Property Returns Lowest Since GFC in 2020
French property recorded a total return of 3.2 percent p.a. at December 2020, according to the MSCI France Annual Property Index.
Norwegian Property up 200bps as Returns Dipped Elsewhere
Norwegian real estate returns improved 200bps to 9.9 percent in 2020, in contrast to most global markets.
Working from Home May Be Driving U.S. Residential Price Dispersions
For the year to December 2020, the total return of retail property was -8.5 percent, while residential was still positive at +1.3 percent.
Assessing the Slowdown
Across all eight countries, returns have been squeezed by the pandemic with falls in total return being mostly driven by lower capital growth but also by lower income returns.
Longer Leases a Boost for Weakening Markets, A Drag for Rising Ones
For the year ended September 2020, longer- and shorter-leased UK assets returned +1.5 percent and -2.5 percent, respectively.
Offices Underpinned Italian Property Return but Segment Performance Widely Dispersed
Italian property returns slowed to 1.2 percent for the first six months of 2020 —from 3.0 percent in the second half of 2019.
Location Within Gateway Cities Mattered
Over the 10-year period to June 2020, these prime locations within the global cities all produced superior capital growth when compared to the rest of the city.
Australia Property Returns Lower as Retail and Industrial Returns Further Dislocate
Australian property returns slowed to -2.5 percent in the second quarter of 2020—the lowest quarterly return since 2009.
U.S. GDP Growth and Property Returns
Over the first six months of 2020, total returns according to the MSCI/PREA U.S. ACOE Quarterly Property Fund Index have already softened.
Property Funds’ Asset-Level Return Slows
Global property funds’ return declined by 90 basis points to 0.6 percent in the first quarter of 2020, according to the MSCI Global Quarterly Property Funds Index.
Performance Spread in Australian Retail Property Widened
Australian retail property registered an all-time low total return of -2.7 percent for the quarter ending March 31, 2020.
Global Index and National Market Total Returns
The index has now seen a full 10 years of positive total returns since the recovery from the financial crisis; however, COVID-19 has the potential to mark a turning point.