Switzerland has highest European RE returns; France, Italy lower than last year - IPD

Switzerland has produced Europe's highest total returns for 2008, at 6.1% a point down on 2007 but exceeding 5.9% in 2006, the last full boom year for most markets, according to the Investment Property Databank index, developed with Wüest & Partner. French commercial property provided total returns last year which were negative for the first time in 11 years of measurement. Its annual index registered a negative 0.9% return against a 15% positive return in 2007. In Italy, commercial property provided a fractional total return in the second half of last year of just 0.10%. Capital growth contracted by 2.5% after being flat for the first half once delayed effects of the credit crunch began. The positive return was entirely due to resilient income returns.