Property goes from strength to strength

By Andrew Hicks, manager of the Edinburgh Property Portfolio The year 2001 was the second year r...

By Andrew Hicks, manager of the Edinburgh Property Portfolio The year 2001 was the second year running that commercial property returns finished ahead of both equities and gilts. This outperformance was despite rising yields resulting from reduced rental growth expectations and in some markets, a softening of rental value. Can commercial property make it three in a row? The start of 2002 has been encouraging with the Q4 2001 stability in returns extending into January. The 12- month return for property to Jan 2002 now stands at 7%, virtually unchanged from the return shown in O...