Commercial property returns outpace shares](http://www.reuters.co.uk/newsPackageArticle.jhtml?type=personalFinanceNews&storyID=496049&src=eDialog/GetContent§ion=finance)
LONDON (Reuters) - Investment returns on commercial property were at their highest since 1994 in March and have outpaced both shares and gilts in the first quarter, fund benchmarker the Investment Property Databank says.
All property returns posted 1.6 percent in March, compared with a negative return of -1.3 percent for equities and 0.4 percent for gilts, IPD said in its monthly UK index report.
In the first quarter, property produced total investment returns of 3.5 percent, with equities at 0.6 percent and gilts at 1.4 percent.
Property’s strong performance was derived from capital growth of 1.1 percent and anecdotally this suggested continued downward pressure on yields could stem from a return of institutional investors to the market, an IPD spokeswoman said on Monday.
There was also further evidence the office property sector is stabilising with office rental value growth at -0.1 percent in March, compared with -0.4 percent in February and -0.7 percent in November last year.
Total returns from retail property were 1.9 percent and for industrial property 1.7 percent in March, IPD said.