The German Property Index (GPI) is a property-performance-index, calculated on the basis of available market data (e.g. RIWIS). The GPI provides the total return, according to the capital growth return and cash flow return. The index draws upon market data for 127 German cities, concerning the office, retail, residential and logistics property markets. Thus, results can be presented on a regional and sectoral level. The GPI can be applied as an analysis tool when e.g. calculating benchmark volumes for German property portfolios. Since forecasts are also included in the available market data, which underlie the GPI, market developments can be anticipated in order to facilitate for example investment decisions.
For the calculation, bulwiengesa apply their market knowledge on assumptions concerning administration and maintenance costs as well as other unrecoverable operating costs within various market segments. These costs reduce the owner's revenue and result in the net operating income. The reliable market data and consistent calculation of total return, capital growth return and cash flow return allow comparisons between cities and market segments.
The national German Property Index (= GPI total return) for individual sectors of the property market is the result of a weighted sum of the capital growth return (CG) and cash flow return (CF) for 127 cities. Weights of the cities can differ between sectors and time and are currently not constant.
The weight is defined as the share of tradable property assets of an individual sector in the entire property market. By now, hardly any reliable data is available concerning the volume of tradable property assets in Germany for the property sectors, therefore bulwiengesa estimates the volume of tradable property assets in Germany for the weighting the German Property Index.
average annual values
own calculations by bulwiengesa AG