Total returns recorded by IPD's Pan-European Property Index showed a 'significant' fall in 2007, down to 5.9% from 12.4% in the preceding year. Capital values were impacted by negative growth in the UK and Germany, Europe's largest economies. Further, IPD said that, similarly to the 2006 year, currencies had a major impact on investor returns. The appreciation of the Euro against other regional currencies resulted in a total return in Euros of 2.6% in 2007, substantially lower than the returns enjoyed without currency effect, in sterling and in Japanese yen. US dollar investors fared best in 2007, earning an All Property total return of 13.7%.
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