Investors feeling optimistic about a recovery in the property market will be disappointed by the latest property stock figures from Standard & Poor’s Index Services.
The firm said that developed world property stocks continued to fall in the first three months of 2009.
The S&P Global Property index fell by 19.81%, while the Developed Property index dropped 22.22%.
S&P’s Quarterly Global Property and Reit report says the falls are a result of many investors fearing that “talk of a bottom for property and Reit stocks is premature”.
North America saw the largest falls, with its index losing 31.69%. Europe lost 18.23% and Asia Pacific 15.60%.
In Europe, however, Austrian property stocks were boosted by strong returns from Immoeast AG. The region was up 20.321% for the quarter.
Property in emerging markets also appeared to be “healthier”. The S&P Emerging Property index rose 7.81% whilst Israel posted an increase of 33%.
Building returns with wary approach