The Swedish Property Index gives property owners key market statistics and a yardstick to measure their portfolio returns. The services offered by the Swedish Property Index provide the market with reliable methods of measuring total returns on Swedish property investments, which makes it possible to make comparisons with other asset classes, such as equities and bonds as well as property markets abroad. The index can also be used to benchmark property operating costs.

The Swedish Property Index measures the returns achieved on directly held property investments. It is compiled from valuation and management records for individual buildings in complete portfolios. The return is calculated as the sum of cash flow (the net income receivable and the capital expenditure) and capital growth during the period, expressed in relation to the capital base. The net income receivable of the property portfolio is drawn directly from company accounts whereas the capital base and the change in capital value of the property portfolio are based on individual property valuations.

All properties included in the Property Index are valued individually. To be credible, an index must be transparent and be based on common definitions and uniform valuation practice. The valuation of the properties to be included in the index must follow the common principles and apply the definitions laid down in the "Valuation Guidelines for Swedish Property Index".

The introduction of common guidelines and definitions in property valuations as well as requirements in respect of the valuers' experience and implementation procedures proposed in the Valuation Guidelines will contribute to increasing the quality of both internal and external valuations. However, the valuation guidelines cannot claim to take stock of all details. Many important assessments, primarily in respect of rent levels and property market factors in general, are left to the discretion of individual valuers. Therefore quality controls on the submitted valuations are carried out annually in order to ensure consistency in the index. In addition to this the numerical data are controlled when performing the calculations, as to make sure that the information is complete and within reasonable intervals.

Click here to download the Valuation Guidelines as a pdf-file.