The FTSE EPRA/NAREIT Emerging Index, which measures the performance of listed real estate companies and REITs in Emerging markets, has risen 15.8% in 2017 and 3% in April as of April 24. This increase is greater than other indexes from the FTSE EPRA/NAREIT Global Real Estate Index Series® representing Developed, Developed Europe and Eurozone markets.
Experts from the European Public Real Estate Association (EPRA) and FTSE Russell offer insights on what factors may be driving these comparative index returns year-to-date and what market participants should look for in an index measuring listed real estate companies and REITs.
Ali Zaidi, director Research & Indices, European Public Real Estate Association, said:
“Year-to-date, the FTSE EPRA/NAREIT Global Real Estate Index Series demonstrates that listed real estate companies and REITs in emerging countries have outperformed those in Developed countries, which tend to have a higher proportion of property owners focused on managing and leasing properties. Dividends played a substantial role in supporting performance of Emerging countries where REITs represent a significant portion of total real estate, such as South Africa and Mexico. On the other hand, in Emerging countries where the real estate market is primarily focused on property development, such as China, Malaysia and Brazil, price return continued to support the index returns.”
Catherine Yoshimoto, senior product manager, FTSE Russell, said:
"Market participants can use the country and regional indexes within the FTSE EPRA/NAREIT Global Real Estate Index Series to better understand performance nuances of different property markets, whether Developed, Emerging or both."
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Views expressed by Ali Zaidi of EPRA and Catherine Yoshimoto of FTSE Russell are as of April24th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.
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