Techniques and Challenges in Developing Property Indices
In: Journal of Property Valuation and Investment, Volume 10, Issue 1, p. 389-404
Presents the methodology for designing, creating and maintaining a
performance index of properties held in institutional portfolios.
Illustrates the technique using the Russell Canadian Property Index
(RCPI). Notes that it can be used for asset allocation and performance
measurement purposes. Concludes that the introduction of real estate
indices to institutional investors′ allocation and evaluation frameworks
will assist in promoting and entrenching this asset class as a necessary
component of any pension portfolio.