The report adds that the market delivered its strongest performance for 11 years. Total property returns (office/retail/industrial) in 2004 were 18.3% compared to 10.9% in 2003. This catapulted the sector to top of the table of UK asset classes in 2004, ahead of both equities and gilts which delivered total returns of 12.8% and 6.6% respectively.IPD says that property now ranks as the top performing asset class over the last one, three, five and 10 years. The figures also reveal that last year's rise in interest rates failed to quash investors' enthusiasm for property. Strong demand led to a further 66 basis point fall in the all-property equivalent yield over the course of 2004, which boosted capital values by 10%. The best performing property sector was retail with a total return of 20.5% over the year, boosted largely by a relatively large fall in yields. Industrial ranked second with a total return of 16.9% while offices lagged behind the other two for the third year running delivering returns of 15.2%. But central London, outer London and outer South East offices all delivered good returns of between 16%-17%, according to the report.Rental value growth at the all property level was, according to IPD, "unspectacular" in 2004, showing a 2.3% increase. But this was an improvement on falls of 1.6% in 2003 and 0.8% in 2002. Growth was driven largely by the retail sector, where solid consumer spending propelled a 4% increase in rental values in 2004, the report adds.