Our forecast is that annual IPD all-property total returns will average about 9% over 2011-14. The big picture is that low and broadly stable bond yields will support property prices over the forecast period, as will an occupier market recovery, albeit slow. However, fears about the security of income on non-prime property could push up average required yields by 10bps to 20bps in 2011, enough to lower capital values by a modest 2% or so.
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