Abstract

The boom-bust cycles in the Commercial Real Estate (CRE) market pose significant implications for financial stability, exacerbating risks associated with commercial property depreciation and heightened bank and nonbank exposures. However, the high complexity of CRE markets and the persistent data gaps present substantial challenges for assessing these vulnerabilities and implementing effective macroprudential policies.
Since the launch of the G20 Data Gaps Initiative (DGI), the Bank for International Settlements (BIS), in close collaboration with international organisations and its member central banks, has made considerable progress in collecting and disseminating commercial property price statistics (CPPIs). Critical challenges remain, particularly in terms of geographical coverage, timeliness, cross-country comparability of aggregate measures and heterogeneity of available breakdowns and sources.
Despite these gaps, CPPIs remain vital indicators for monitoring excessive price developments and identifying the buildup of financial imbalances.
This presentation provides an overview of the current state of the BIS commercial property price statistics and explores how this dataset can be leveraged to analyse CRE price development around past crises, highlighting their potential role as leading indicators.