Italian commercial property delivered a 1.5% total return over the second half of last year, which contributed to an annual 2.5% return, according to the IPD Italian Bi-Annual Property Index. The second half of the year represents a 40 basis points improvement over the first six months. The annual return is comprised of a -2.8% capital depreciation and a 5.4% income return. Capital depreciation eased over the second half of 2009, by 40 bps to -1.2, while income returns remained stable at 2.7%. The IPD Italy Biannual Property Index - which includes 20 institutional portfolios with an aggregate capital value of EUR 9.7bn at December 2009 - represents the first indication of direct Italian property market performance ahead of the IPD Italian Annual Property Index which will be published on 21 April.