The performance of property developments of istitutional investors

The aim of DID Deutsche Immobilien Datenbank GmbH, which forms part of the Investment Property Databank (IPD) network, is to foster detailed comparative analyses for real estate portfolios of institutional investors in Germany. IPD is a global information business, dedicated to the supply of independent market indices and portfolio benchmarks to the property industry. This paper analyses the performance of property developments in institutional property investorsí portfolios over four European countries ñ France, Germany, Sweden and the UK ñ based on data submitted to the IPD property databank. Performance data over the period 1998 to 2002 are analyzed by means of a multifactor analysis of variance where the factors are the country, property use type, year of completion, duration and capital value groups of property developments. Only a small amount of research is yet available on the performance of property developments. The paper is designed to shed light on the real performance of property developments and is thus supposed to be valuable for European institutional property investors in assessing the feasibility of property developments.