Retail is forecast to be the best performing sector in 2003 with a total return of 11.7%, although a slowdown in consumer spending is expected to have an adverse affect on performance next year. And the office sector is expected to be the worst performer in the short term due to a lack of rental growth in central London, but is expected to bounce back in the medium term.
Industrial property is forecast to be the best performing sector in 2004. Whilst occupiers in the sector operate in low margin businesses, a substantial income return compensates investors. As such, industrial property is relatively unexposed to the vagaries of the financial and consumer cycles.
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