Derivatives are long established and widely used in the securities market, but their use for property, although established for over 15 years in the UK, has remained limited. The IPF Property Derivatives Interest Group (PDIG) has been set up to support the development of the property derivatives market, partly in response to the needs of investors and partly following changes to the regulatory and tax environment, which have made property derivatives more accessible and more attractive.

PDIG Committee members can be found on our Committees & Groups page. 

ALTERNATIVE USES FOR PROPERTY DERIVATIVES

Published in February 2018, Paper 3 in the PDIG series examines some more topical uses of property futures in light of current market conditions and regulatory requirements. The areas covered include synthetic vs physical real estate exposure for yield, alpha and beta returns, enterprise risk management and the role of futures in defined contribution pension schemes.

Alternative Uses for Property Derivatives

Managing Commercial Property Risk: A different perspective

The second paper in a series from PDIG exploring the use of property futures contracts. This paper, published in November 2016, focuses on how property futures may be used to help better manage property risk. 

Managing Commercial Property Risk: A different perspective

Property Future Contracts: An Introduction

Published in November 2015, this is the first in a series of papers discussing property futures from the Property Derivatives Interest Group (PDIG). This first paper explains the structure of property futures, investment advantages and provides an overview of the property futures market. Related costs, pricing, risk and property futures’ role in portfolio rebalancing are discussed.

Property Future Contracts: An introduction