Global Real Estate Indices: How are They Different from the U.S. Real Estate Indices?

British FTSE offers a constituent product that enables traders to accurately benchmark against the FTSE EPRA/NAREIT Global Real Estate Index series. REI means a moving 25-year average of the annual appreciation of all cabin site values. This number is adjusted after every new re-appraisal cycle by the DORE (Department of Real Estate).

In its turn, the MSCI World Real Estate Index is a free float-adjusted market capitalization index that consists of large and mid-cap equity across 23 Developed Markets (DM) countries. All components in this index are classified in the Real Estate Sector according to the Global Industry Classification Standard.

However, in November 2023 MSCI has discontinued eight of its 9 MSCI World Real Estate Indexes, including one key benchmark. Currently, there are no high profile and sound alternatives to that group of MSCI indices, however there are several proxies. One of them is being the Green Street Commercial Property Price Index, which increased 0.7% in May 2024. The all-property index — a measure of pricing for institutional-quality commercial real estate — has increased 1% this year and is now 21% below its March ’22 peak.