DIX Deutscher Immobilien Index
Encyclopedia
The German property index (DIX Deutscher Immobilien Index) is a performance index published annually. The index measures ungeared
total returns to direct property investments.
Investors and managers use the index to compare property returns with those of other major asset classes
and assess property performance in different market sectors. Therefore, this property index has been specifically developed to be as consistent as possible with those used in mainstream investment analysis
.
In 2006 total value of the properties covered by the German property index (DIX) Databank was €53.8 bn, representing 21% of the value of the holdings of the financial institutions and quoted property companies.
However, €53.8 bn represent close to 50% of the relevant measurable German investment market with an annual valuation.
All growth and index calculations are value-weighted, meaning that each property contributes to the result in proportion to its capital employed
and are compounded monthly to report industry standard time weighted measures.
Leverage (finance)
In finance, leverage is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives. Important examples are:* A public corporation may leverage its equity by borrowing money...
total returns to direct property investments.
Investors and managers use the index to compare property returns with those of other major asset classes
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
and assess property performance in different market sectors. Therefore, this property index has been specifically developed to be as consistent as possible with those used in mainstream investment analysis
Valuation (finance)
In finance, valuation is the process of estimating what something is worth. Items that are usually valued are a financial asset or liability. Valuations can be done on assets or on liabilities...
.
In 2006 total value of the properties covered by the German property index (DIX) Databank was €53.8 bn, representing 21% of the value of the holdings of the financial institutions and quoted property companies.
However, €53.8 bn represent close to 50% of the relevant measurable German investment market with an annual valuation.
All growth and index calculations are value-weighted, meaning that each property contributes to the result in proportion to its capital employed
Capital employed
Capital employed has many definitions. In general, it represents the capital investment necessary for a business to function. Consequently, it is not a measure of assets, but of capital investment: stock or shares and long-term liabilities.- Definitions :...
and are compounded monthly to report industry standard time weighted measures.
External links
- IPD Investment Property Databank Investment Property DatabankInvestment Property DatabankInvestment Property Databank is an independent body that provides performance and risk analysis for real estate for investors, managers, REITs, lenders and advisors...