IPD launches model to weigh up private real estate risk

IPD has launched a service for modelling private real estate risk, in conjunction with US owner MSCI, called the Barra Private Real Estate Model (PRE2).

Roveen Bhansali, MSCI’s head of risk management analytics, said: “Until now it has been impossible to measure and compare the risks of global real estate with other asset classes.

“This model expands coverage to 31 countries and puts it in a global, multi-asset-class context.” The model uses IPD’s data as  an alternative to using public equity data to represent private property. Peter Hobbs, IPD’s MD of research, said the model reflected changes in property risk forecasts “in a more timely way”.