68 Real Estate

1. 68 Real Estate Development of a methodological basis for real estate SPPI and deflators for value data Eurostat funded project

2. Industry classification 68 Real Estate 68.10.00 Buying and selling of own real estate 68.20.10 Non-profit housing associations 68.20.20 Private housing societies 68.20.30 Other renting of real estate 68.20.40 Renting and operating of own or leased real estate 68.31.10 Real estate agencies 68.31.20 Housing agencies, letting of holiday homes, etc. 68.32.10 Management of real estate on a fee or contract basis 68.32.20 Owners’ associations By chosing the three sub-industies in bold as deflators, the industry for L 68 real estate will be covering more than 80 percent of total industry turnover

3. 68.20.40 Renting of non-residentialbuildings “One of the largest missing deflators in the National Accounts” Services • Services to be price followed are payments for renting ‘office space’ • Renting services are divided across types of real estate, e.g. offices, retail, industrial etc. Service providers • Prices should be collected from owners of real estate who provide the services Price methods • Prices collected are most likely unit values (rent per square meter) or contract prices Data collection • Market reports from property advisors • Supplement with prices from companies

4. 68.31.10 – Real estateagencies Services • Intermediate services when trading real estate • Other services within this industry are consulting services and valuations Service providers • Services are provided by real estate agents acting as intermediaries Price methods • Incentive based prices most often being commission fees • consulting services and valuationstypically quoted in hourly rates or by direct use of repeated services Data collection • Collect prices from real estate agencies • Since commission fees are noted in percentage, these prices should be combined with a property value indicator to capture the price movements in the underlying assets. This solution should be possible after consulting our own house price index section, which will be able to provide a price index for commercial property sales.

5. 68.32.10 – Management of real estate Services • operational services • administration of consumption accounts, • legal assistance • repairs and • rent collection Service providers • Services provided by third party property- or facility management companies Price methods • Property management services tend to be charged on a contract basis • but existing data also shows services charged by direct use of repeated services Data collection • Prices from property- or facility management companies • Use of existing data

6. Project status – work still to beconducted Pilot project • 68.20.40 – Renting and operating of own or leased real estate • Market reports, supplemented with questionnaire based survey for a handful of companies • 68.31.10 – Real estate agencies • Questionnaire based survey, combined with property value indicator for non-residential buildings • 68.32.10 – Management of real estate on a fee or contract basis • Use of existing data, supplemented with questionnaire based survey Splitting B2All to B2B and B2Others • Mainly for real estate agencies. N/A for 68.20.40 and 68.32.10. • Combine index for owner occupied housing and commercial property sales Methodological report • Description of methods used • Overview of international experience

7. Questions, feedback and discussion Thankyou! Contact information: Rasmus Anker Kristiansen +45 39 17 35 32 rkr@dst.dk