Andrew Jackson, head of property research at Standard Life Investments says that over a period of 30 years property has outperformed bonds but underperformed equities. Over a period of 20 years, however, it has underperformed both. As a result, property now offers investors a significantly greater yield margin over the other two asset classes.

'The biggest problem investors in property face is poor liquidity, with large transactions taking months to complete,' Jackson says. But he adds: 'We believe its current pricing makes for strong returns over the medium term. Indeed, the outlook for property over the next couple of years also looks encouraging, with limited supply of space either currently available or in the construction pipeline and a benign environment for economic growth both here and on the Continent.'

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