PROPERTY consultancy Gerald Eve has predicted a continued boom in the UK's commercial property market.
A report by the consultants forecasts an average 15.3 per cent return on the annual UK property market in 2004 - significantly higher than the 10.7 recorded in 2003. That represents the strongest performance of the country's commercial property sector since 1997.
The retail and industrial sectors look likely to provide the strongest-performing markets, with forecast returns of more than 17 per cent forecast.
The office sector continues to recover, and Gerald Eve has predicted a total return of 10.4 per cent, comfortably ahead of both gilts and equity investments in 2004.
Alan Gardner, senior researcher at Gerald Eve, said:"The weight of money invested in the UK property market is driving yields down and prices up.
"The UK property market cannot be considered a niche market any longer.
"It is competing - and winning - against mainstream financial vehicles for investment from institutions and private investors."
David Johnson, partner at Gerald Eve, said: "There's no doubt that the forecasts are good news for current investors.
"Property investment opportunities need to be scrutinised closely to ensure they represent genuine value."
Published: 20/10/2004
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