The Danish Property Federation´s market statistics - consensus forecast (April 2018)

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Ejendomsforeningen Danmarks markedsstatistik – forventninger

april 2018

The Danish Property Federation Market Statistics – Consensus Forecast

April 2018

• Still surprisingly low expectations to total return in 2018: 6.5 percent • Historic total return in 2017: 7.2 percent • Historic good expectations for industrial

WEB REPORT CONSENSUS FORECAST

• Increase in Odense

Decreasing expectations for total return In 2018, a total return of 5.6 percent is expected, while expectations for both 2019 and 2020 including the period 2018-2020 are expected to be 5.4 percent. This is the lowest expectation for a coming five-year period measured since the beginning of the Consensus Forecast (2011). Expectations for 2018 have decreased by 0.2 percentage points compared to last year, while expectations for 2019 have decreased by 0.5 percent compared to last year. Thus, the market expects a coming recession.

The lowest expectation for a coming five-year period measured since the beginning of the Consensus Forecast (2011).

The historic total return in 2017 ended at 7.2 percent Historic 2017

2018

2019

2020

7.2*

5.6

5.4

5.4

Quarterly change

0.0

-0.2

New

New

Annual change

-0.2

-0.5

New

New

Total return

2018-2022 5.4

Source: The Danish Property Federation Market Statistics. * Realized total return in 2017. Rem.: The average total return based on the replies 2018-2020 is presented in the table. Total return is in percentage and shows return on investment property compared to the size of the investment in a given period. Total return consists of two types of returns: Direct return and return on value. Direct return is current net operating profit of the period divided by investments size at the beginning of the period. Return on value is the value added in the given period divided by the size of investment at beginning of period. Total return is before any financial costs and before inflation. The historic total return in 2017 might change in the future, when new data is included in the market statistics.

The participants’ expectations to total return 2018

2018-2020

12 %

10 %

expect a total return

expect a total return of

of 7 percent or above.

5 percent or below.

17 %

45 %

expect an increase in total return.

expect a decline

31 %

48 %

expect a total

38 %

expect a total

return between

expect status quo

return between

6 to 7 percent.

in total return.

5 to 6 percent. under 5

Published by

in total return.

ml 5 og6

ml 6 og7

over 7

stigende

Uændret

faldende

1


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