The latest from the IPD property Index shows where real estate investments sit in the investment market as a whole. ( Link to data is at bottom of page.)
An analysis of the data shows that industrial property remains a stable part of a portfolio which is geared to release a steady income stream. The office sector also shows good growth in income returns, although this could be largely swayed by the London market and demand for high end inner city assets. In comparison to other asset classes such as equities, property equities and bonds the returns on all property sectors has showed higher returns.
This could underpin the fact that there is some value in REITS with a bias of capital based in UK.
Underpinning the strength of Industrial property is the transparency of income,the lenght of leases that are being signed and the lack of freehold purchases by business creating a greater demand. It is clear that through extremely cautious and austere times the Commercial sector in the South has remained bouyant.
Please see link below to data.