Last edited 22 Nov 2020

Investment Property Databank (IPD)

The Investment Property Databank (IPD) is a property performance index for the commercial real estate sector. The IPD compiles monthly, quarterly and annual indices for retail, office and industrial properties and is considered the standard benchmark for investors to analyse the different aspects of UK property market performance.

The IPD collates, monitors and analyses the property holdings of major investors, and includes data on transactions. By using the IPD indices as benchmarks, institutional investors can manage their commercial real estate portfolios more effectively.

The IPD Annual Index for the UK dates to 1980 and, as of the end of 2015, had amassed performance details for nearly 24,000 properties with a total capital value of over £200 billion. This is the highest of their 25 country indices, but it still can be said to cover just over 40% of investment stock, as the total value of the commercial real estate market at the end of 2015 was £871bn. This incomplete coverage means that the breakdown of the overall market in terms of sector and geography will not be fully represented in the index.

Similarly, detractors of the IPD index claim that it is likely to be unrepresentative of factors such as the property quality since it is biased towards institutional portfolios with higher-quality assets.

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