Investment performance is measured using transaction prices in most asset classes. But real estate is illiquid and heterogeneous, so valuations and sales prices can differ. Our annual report compares valuations and sale prices in global real estate.  

Investment performance is measured using transaction prices in most asset classes. But real estate is illiquid and heterogeneous, so valuations and sales prices can differ. Our annual report compares valuations and sale prices in global real estate. 

For mainstream financial asset classes, investment performance measurement is based on transaction prices. In contrast, direct real estate is well known for being an illiquid and heterogeneous asset class, making the establishment of purely price-based indexes problematic. In order to overcome these obstacles, MSCI’s private real estate indexes are constructed on the basis of professionally sourced open market valuations, i.e., price estimates based on a set of market process assumptions...