SWEDEN/IRELAND – Swedish property returns rose strongly in 2000, while Irish property assets retained their strong performance levels, according to figures published by the London based property index provider, Investment Property Databank.

Swedish property returns have been on an upswing for some years, rising to 22.1% last year, from 17.6% in 1999 and 14.4% the year before that.
Irish property investments, however, still yielded 27.9% in 2000, albeit down from 31.1% the previous year and 38.2% in 1998.
Both figures compare favourably to UK property investments, which according to IPD returned 10.4% last year.
Figures for France, Germany and the Netherlands are still to be published.
The Swedish property return growth can explained by a rent hike – over 20% on average for offices – in the year 2000, says the Svenskt Fastighetsindex, which provides the country’s figures.
Direct investment in Swedish office property returned 24.5% last year, while property shares rocketed by 40%.

The total value of the properties covered by the index is SEK225bn, representing 50% of the value of the holdings of the financial institutions and quoted property companies. Greater Stockholm accounts for more than 70% of the total, and Göteborg and Malmö make up a further 17% by value of the properties covered.

Strong property returns in Ireland are also affected by accelerating rental value growth, as office rents rose by 24.9% last year, according IPD.
Despite a slight drop against average property returns in 1999, the retail sector improved its performance, up to 24.5% from 22%.
Property continues to beat other asset classes in Ireland with returns of 27.9% last year, against domestic equity returns at 15.7% and gilt yields at 7.4%.
Since 1990, Irish property has returned 15.2% on a yearly basis.

The Irish property index covers over 300 properties, worth IR£2.6bn, and around 85% of all institutional investment in the market.