Retail property is the one bright spot in a slowing investment market, according to a survey from DTZ.
DTZ's latest Money Into Property report is accompanied by a poll of property fund managers that shows most now expect equities to continue to outperform other asset classes in 2003.
Managers predict that commercial property will deliver total returns of about 6 per cent this year, the lowest return since 1995, whereas equities are expected to deliver returns of 11 per cent and Government bonds 4 per cent. Property returns are expected to improve moderately to 7 per cent.
Among those still buying property, appetite for retail parks and warehouse units remains strong. Despite tough conditions in the manufacturing sector, standard industrial units and warehouses still feature high on the list of priorities. The office sector continues to be the least-favoured commercial sector, particularly M25 towns and Central London units.
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