Of the 23 markets looked at, only three experienced saw a positive capital return in 2008, albeit a small one. South Africa, for example, grew 4.4%. The 20 other markets all declined, with Ireland being hit the hardest, experiencing a 37.2% decline in capital growth.

"In a year of globally synchronized economic recession, it is not surprising that IPD's Global Property Index breaks records in the sharpness and scale of the correction in investment property prices recorded," says IPD founder Ian Cullen. "Perhaps less keenly anticipated was the spread across the 23 constituent markets, with double figure declines in the US and UK diluted by much more muted or delayed responses in the other three biggest markets – Japan, Germany and France."

Unlike previous recession cycles where some markets would continue to thrive while other dramatically fell, and some would begin to recover while other continued to flounder, Cullen says this time all the markets are experiencing the recession simultaneously. Although the extent with which it's felt depends on the particular market fundamentals.

This report is IPD's second global index and now includes the US numbers for the first time. As GlobeSt.com exclusively reported at the end of April, London-based IPD launched it's first US index after being present in the market for nearly five years.