Returns from UK commercial property are expected to reach 17% in 2014, according to the latest quarterly Investment Property Forum survey, but will decline in the years ahead.
Returns from UK commercial property are expected to reach 17% in 2014, according to the latest quarterly Investment Property Forum survey, but will decline in the years ahead.
Each quarter, the survey polls 30 fund management and property firms for their predictions on total returns from property, including capital growth and rental growth.
Across all commercial sectors, the prediction is for 17% for 2014, up from the 12% predicted in May. Office and industrial lead the way, with return predictions of 20.6% and 19.8% respectively.
However, returns are expected to drop sharply across all sectors from 2014 onwards, falling to 5.4% for 2018.
Capital value growth (excluding rental value growth) currently stands at 10.9%, but is predicted to fall to zero by 2018.
For a summary of the report, click here.