Property managers are expecting reasonably stable returns from the office sector in 2011, it has been claimed. In particular, Germany has been tipped as a destination where investment returns will be strong.
Independent global investment manager Invesco has said that the country will see the best growth as a result of the lack of new developments currently taking place in the country. The retail and industrial sectors are also expected to perform well in the coming year.
Speaking during the Global Investment Club webinar hosted by Property Week Simon Mallinson, director of European research at the company, said that tenant demand for office space was driving yields down and pushing rents in the opposite direction.
"We would expect office to come out first just because of the type of growth that is returning to Germany and the fact that there is very little development pipelined in the office markets across Germany," he added.
Meanwhile, the Investment Property Databank (IPD) reported that institutional European pooled property funds
have recovered over the 12 months to June, delivering an 8.3 per cent return, compared to a loss of 18.6 per cent over the previous year to June.
- Wednesday 06 October 2010