IPF Long-term Value Methodologies in Commercial Real Estate Lending Comparison of Property Market Indices (July 2020)
This working paper, whilst a stand-alone report that may be read separately, forms part of a larger study, Long-term Valuation Methodologies for Commercial Real Estate Lending.
The paper discusses the indices used in the Long-term Valuation Methodologies for Commercial Real Estate Lending research, reviewing the characteristics of the all property and sector level indices published by three major data providers. The different indices exhibit different strengths and weaknesses. By using multiple sources, the authors have been able to compare results based on one against those based on others and so determine how consistent these series are in describing how UK commercial real estate has performed. The comparison was conducted after considering the availability of appropriate data both in the UK and internationally.
The full and summary reports of the Long-term Valuation Methodologies for Commercial Real Estate Lending study, together with comprehensive appendices, are available to download from the Resource Library.