MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indexes, portfolio risk and performance analytics and ESG research, has recorded a 15.3% total return in 2015 in Spanish property investment as indicated in the IPD Spain Annual Property Index.
The total return achieved in Spanish property investments during the year marks a significant rise from 9.4% in 2014, and corresponds to the strongest performance since the record of 16.9% in 2006.
This performance has been driven by strong capital growth which accelerated to 9.7% from 3.6% in 2014. The robust capital value growth is a result of yield compression scenario and rising market rental values. The improvement in capital return has been seen across all market sectors, especially in the office, industrial and retail sector. Income return fell to 5.2% in 2015 from 5.6% in the year before.
Luis Francisco, Senior Associate, MSCI, commented: “The strong results achieved in the property market since the booming years of a decade ago signal the health of the sector and its new found resilience.
“Yield compression created incentives for investors in the acceleration of capital value growth. We also saw that real estate became an attractive asset class for investors as it outperformed bonds and equities.”