Content partner: DTZ
DTZ is part of UGL Services. The combined business is the third largest property services company in the world, providing corporate/occupier clients with a global, integrated end-to-end service offering and a best-in-class investor services capability in research, investment agency, leasing agency, property and facilities management, project and building consultancy, valuation, and investment and asset management. The organisation has 24,000 permanent employees and 40,000 personnel including contractors, operating across 225 offices in 45 countries.
DTZ is the premier source of research on global real estate markets. It provides high quality, data-driven research, giving insights into local, regional and global markets. Its team of around 70 analysts and researchers cover trends and data in real estate markets to support clients’ real estate strategies and decisions.
The company’s global forecasting team provide a detailed view on how various markets will develop in the short to medium term, based on a combination of economic forecasts, historic real estate data, econometric modelling and local market knowledge gleaned from DTZ researchers and agents across the globe. DTZ now provides forecasts for more than 200 markets around the world.
In addition to its regular and topical reports, DTZ also offers specialist data products to financial institutions, investment managers and property companies. These products are updated quarterly and include historical data on leasing market trends, five-year rolling forecasts on a wide range of real estate fundamentals, and global, regional and country real estate capital markets data.
LEGEND OF THE DTZ CHARTS
The Fair Value Index is updated on a quarterly basis and always looks five years ahead. It includes a comparison of the expected return over a five-year period with the riskadjusted demanded return, the return that investors expect on the basis of current interest rates, premium surcharges, and similar conditions.
The DTZ Fair Value Index classifies markets according to their attractiveness for investors based on current pricing. Undervalued markets are classified as HOT, as they offer investors attractive buying opportunities. Overvalued markets are classified as COLD; in this case DTZ estimates that these markets will underperform in the coming years. Markets that are fairly priced are classified as WARM.
This way the index determines whether an investment after five years will result in a higher, similar or lower return than the risk-adjusted rate of return for investing today in a commercial property. The Fair Value Index is compiled by DTZ Research in London but is based on data from local branches. The index is made for more than 200 markets worldwide and, like all of DTZ’s research reports, it can be accessed online through the company’s website.
DTZ publishes a quarterly update of the index for Europe, Asia Pacific and the U.S. Each market covered by DTZ has a separate index for the Office, Retail and Industrial sectors, and is eventually placed in one of the following three categories: HOT, WARM and COLD.
DTZ is covering the commercial real estate development of the following European cities:
For more information on DTZ research:
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