Global property held directly by private investors delivered a total return of 7.4% in 2016, marking the seventh consecutive year of positive performance since the global financial crisis (GFC). However, global momentum was negative, the return coming down from 10.7% in 2015.
While still positive, global capital growth more than halved in 2016 to 2.5% from 5.4% the previous year, potentially indicating that a turning point may have been reached. Despite the slower capital growth, yields in many markets continued to tighten and the income return on the Global Annual Property Index fell below 5% in 2016 for the first time since its inception.
Source : MSCI