Property Derivatives
The volume of capital targeting property markets is running at unprecedented levels. A number of reasons exist for this increased interest and several stem from structural changes in the market. Increased investment choices, including Property Derivatives and index based investment vehicles, are significant factors.
Indices that represent the change in property values have been used for many years as the benchmark against which the Investment Managers measure their individual performance. These indices are calculated by a combination of independent valuations and actual sale price data. Wherever there is sufficient market confidence, (in the ability of the indices to accurately reflect the true state of the market) index based derivatives are possible, provided the regulatory environment is supportive.
The UK property market is demonstrating a growing acceptance in the accuracy of the indices produced by the Investment Property Databank (IPD). The recent tax changes have encouraged activity and the market place seems poised to grow rapidly.
In the UK, ICAP has agreement with Grafton Advisors to evaluate the potential for broking Property Derivatives.
To contact the Property Derivatives team e-mail james.adam@icap.com or paul.rostas@icap.com.
Telephone number : + 44 (0)20 7000 5467