Investors should look to West End offices in anticipation of the sector overtaking retail, according to Cluttons research.
The property consultant claims in its quarterly update that returns on the sector will rise to 15% pa by 2007. Conversely, it predicts a slump in retail returns, estimating the currently favoured sector will come in at 6% in 2003, compared to 13% in 2002.
Cluttons’ Neil Chegwidden said: “Anyone brave enough to venture into the West End of London could well find rich rewards in the medium term. We can foresee rental value growth reaching 10% pa in some markets.”
