Real Estate Indexing and the EDHEC IEIF Commercial Property (France) Index

This paper serves as background literature to the new index and outlines its features and characteristics. First, the importance and the specific characteristics of the real estate market as well as the available real estate investment vehicles are presented. Second, the challenges and problems involved in real estate indexing are discussed. Third, the French real estate market, as the market underlying the index, is described. Fourth, the construction methodology of and the rationale for the EDHEC IEIF Commercial Property (France) Index are discussed in more detail. Fifth and last, this paper provides a set of empirical tests of the properties of the index.