Over this period, direct property underperformed the other asset classes. Property shares performed most strongly, with a return of +22.1% (MSCI FR/ Real Estate), followed by equities (MSCI FR) and government bonds (JP Morgan GBI Global, FR 7-10 years), at 14.7% and 7.5% respectively. The IPD index for OPCI RFA (produced in partnership with ASPIM) recorded a return of 2.7%.

Retail was the only investment sector to see a rise in values in the second half of 2012, with capital growth registered at 0.4% at the year-end. In contrast, office capital growth was negative, at -1.5%, lower than in the previous half-year. The industrial sector has shown the higher income return in comparison with the other sectors at 3.8%.

“These results reflect the deterioration of a number of office indicators: lower market rents, higher vacancy rates, and, for this half-year, a reduction in current rents,” said Stéphanie Galiègue, Managing Director of IPD France and Southern Europe.

Retail recorded the highest 6-month performance among the sectors in the second half of 2012, with a positive total return of 3.1%. Offices trailed on 1.5% for the half year, while the logistics-industrial sector returned 1.4%.

As of 31 December 2012, the IPD France Biannual Property Index is based on 1,087 properties, excluding residential, with a capital value of €20.7 billion held in 25 separate portfolios. GECINA was no longer a contributor of the IPD French database during the second half of 2012. Retail represents 56% of the total investments analysed in the index, against 28% in offices, 11% in logistics and industrial, and 5% in other types of property.