Property set to outperform bonds and equities on back of rent hikes

Property is set to outperform equities and bonds over the short to medium term as continuing strong ...

Property is set to outperform equities and bonds over the short to medium term as continuing strong demand pushes up rent prices, according to a survey of property funds by the David Aaron Partnership. David Aaron, chairman of the group, said: 'The outlook for the commercial property market is better than for equities or for gilts. Most major indicators suggest this is likely to continue for the next few years with average total returns forecast at over 10% a year for 2004 and 2005 and with returns of 7.8% forecast for 2002 and of 9.8% for 2003.' Income yields are correspondingly h...