London – July 31, 2013 – Real Capital Analytics (RCA) announced today the launch of the RCA/PD UK Commercial Property Price Indices (RCA/PD UK CPPI) — the UK’s first transaction-based indices using repeat-sales regression methodology. The UK indices have been launched in conjunction with Property Data, RCA’s data partner in the United Kingdom.
The RCA/PD UK CPPI are part of a global suite of indices that continue RCA’s history of pioneering advancements in commercial real estate information and analysis. The suite includes the Moody’s/RCA CPPI in the US, first launched in 2007. To complement this national benchmark, RCA recently launched over 200 US market and regional indices. In addition, RCA has executed an agreement with Nikkei Business Publications to launch a transaction-based index for Japan later this year.
Simon Mallinson, RCA Executive Managing Director EMEA said, “At RCA we strive to find new ways of helping our clients’ understanding of market price movements. This new index will allow users to look for leading indicators and understand how sentiment has impacted actual pricing. In fact, the latest data illustrates changes in sentiment are afoot.”
Commercial property prices in the UK were up a modest 0.3% in Q2 and 4.3% over the past year. As prices of office properties in Central London have nearly returned to peak levels, investors have started to put pressure on office prices elsewhere in the UK and on retail properties where these indices are just 70% of peak levels. In Q2, price growth for offices ex-London and for the retail sector was the strongest for 10 quarters. Transactions volumes for offices outside London also rose strongly, while volumes for offices in Central London were up only modestly.
“There has been a growing demand for a UK transaction-based index, driven by the change in investor composition over the last decade. This is a unique opportunity to combine our market leading investment transaction data with the recognised global leader in commercial real estate information,” said Mark Pickering, Director of Property Data.
The initial release of the RCA/PD UK CPPI includes 3 national-level indices focused on the office, retail, and commercial (combined office, industrial, and retail) property types and 2 office indices focused on Central London and the UK excluding London. The indices, which will be published quarterly in the month after quarter’s end, utilize repeat-sales regression methodology, an approach that produces quality-controlled property price indices and is widely acknowledged as the most accurate way to track real estate price movements. To learn more about the RCA/PD UK CPPI or to register to receive quarterly updates, visit at http://www.rcanalytics.com/public/rca_cppi.aspx.