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Returns on property investment in France highest in five years

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Staff writer ▼ | March 30, 2016
MSCI said it has recorded a 9% total return for property investment in France in 2015 as indicated by the IPD France Annual Property Index.
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Real estate   The IPD France Annual Property Index shows:
The latest index data showed that the capital growth rose to 3.9% across all sectors in 2015, with a strong increase in the industrial sector at 7.0% followed by retails and offices at 4.5% and 4.0% respectively.

On offices, the capital growth is now above the 10 year average of 2.0%. Overall the total return across all sectors reached 9.0% in 2015, up from 6.4% the year before and highest return over the last 5 years.

However, the income return part is eroding again, down to 4.9% on all sectors and 5.1% on offices - the lowest level ever recorded by the IPD France Annual Property Index.

The IPD France Annual Property Index measures ungeared total returns to directly held standing property investments from one open market valuation to the next.

The index tracks performance of 5,619 property investments, with a total capital value of EUR 106.1bn as at December 2015. The market coverage is estimated to be around 40%, with results dating back to 1997.