Funds keep flowing into a liquid market

property

The weight of money chasing a limited number of suitable investments supported returns of 11% for property despite falling rents last year. This demand should keep the sector performing in 2004

Last year saw another strong performance from the UK commercial property market, with the retail sector outperforming industrials and offices. Overall, the Investment Property Databank (IPD) figures indicate that property returns last year were surprisingly strong at more than 11%. Earlier in the year analysts were forecasting returns of 5%-6%, given concerns over the slowing economy and the uncertainties over Iraq. In the event, the performance of the UK economy was significantly better than expected. However, 2003 proved an unusual year for the property market, in that despite the fall ...