Real estate indexes and performance benchmarks

This paper deals with the indexes and the performance benchmarks used in the real estate market. The first part of the paper introduces a model for multiplesí analysis and classification. Real estate indexes can be divided into research or performance evaluation indexes according to their destination, or into direct and indirect indexes according to the data adopted in their construction. The aforementioned model emphasizes the main characterising features for an index in order to be considered a research or a performance evaluation benchmark. Hence, the classification and the description of the different types of outstanding indexes and their fundamental aspects are determined through the model and the literature review. The third part considers real estate property indexes based on asset deal prices. The fourth part is dedicated to appraisal indexes estimated through assessment processes. The fifth part describes indexes referring to publicly traded real estate companies and real estate funds. A brief description of the Italian market is provided in each of the last three sections. In the last part the focus will be on the attitude of each index to be adopted as benchmark of performance for securitized and non-securitized real estate investments.