MSCI launches indexes tracking property-level performance of quarterly valued assets

NEW YORK-LISTED MSCI has launched a new global index to provide more frequent property-level insights to help investors through ongoing volatile market conditions, the company announced in a Thursday (Jul 14) press statement.

The MSCI Global Quarterly Property Index (GQPI) tracks the performance of over 20,000 property investments in 26 countries, including 17 countries that now have quarterly valued property asset data available for the first time, said the provider of critical decision support tools and services.

It also tracks regional and global aggregates using MSCI's market size reweighting methodology. The new index history dates to December 2007.

MSCI added that the index will help investors monitor and manage international portfolios, particularly in the context of growing headwinds of geopolitical tensions and the associated rising inflation and interest rates.

"The recent performance of the assets that make up GQPI shows that global real estate returns accelerated to 17.8 per cent on a 12-month rolling basis in Q1 of 2022," MSCI said. 

Separately, MSCI launched the Europe Quarterly Property Index (EQPI) on Thursday. This Europe-specific index tracks the performance of over 12,000 property investments in 20 countries to provide quarterly indicators for investors in European real estate.

Rene Veerman, global head of real assets at MSCI, said: "Until now, investors only had access to quarterly property-level indexes for a few of the larger, more transparent markets, but the ongoing economic environment and market conditions as we come out of the pandemic have made clear the importance of timely property-level indicators to understand how real estate markets are responding.

"These new quarterly indexes provide more comprehensive and regular performance data for a more precise reflection of risk in global and European markets, which often have lower frequency valuation practices across market participants."

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