For the three years ending in 2000, UK property returns averaged 12.2% compared to 9.8% for equities and 9.6% for gilts, according to Investment and Pensions Europe.
As a sector UK pension funds recorded property returns of 10.3% last year, accounting for nearly a quarter (23%) of the whole property market.
IPD’s figures are based on 13,260 UK properties valued at £97.4bn (?153bn).
Last year also saw a major switch from investments in retail property to office space, with the latter accounting for 46% of investments, most in Outer London and Southern England. Retail property investment slipped to 32% from 61% in 1999, while industrials maintained a market share of 17%.
– Nevin Adams