The outperformance has been even more emphatic over longer timeframes. Over five years property showed a 67.6% total return; equities -10.9%; government bonds 45.5% and gold 20.3%. And over ten years property returned 193.2%; equities 94%; government bonds 144.0% and gold a paltry -3%.

The RICS forecast that the sustained past poor performance of the equity market is likely to maintain strong investment interest in the commercial property market into 2003, even if equity markets rally in 2003. However, it warned that any military conflict that is accompanied by a spike in the oil price would depress the property market, though the impact also depends upon the duration of the war. And if there were a rapid and successful conclusion to a war with Iraq, then the property market will benefit with stronger financial returns.

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