After overseas investors, pension and life companies and other institutional investors were the second-biggest spenders. The institutions spent euro 17.48 billion ($20.67 billion) by the end of November compared to euro 15.44 billion ($18.26 billion) invested in 2004. Private property groups out-spent quoted companies, investing euro 12.23 billion ($14.47 billion) compared to the euro 7.28 billion ($8.61 billion) spent by the public firms.
The most favored location was the Central London office market, which accounted for euro 18.93 billion ($22.39 billion) billion. This was followed by shopping centers, which accounted for euro 11.65 billion ($13.78 billion).
The report goes on to predict that that all property returns measured by the Investment Property Databank's annual index for 2005 would end the year at more than 17%, still down on the record 18.3% achieved in 2004. David Wylie, associate director at CB Richard Ellis, says that 2006 would see property continue to deliver strong performance as rents, particularly in Central London, begin to rise.
He forecast that offices would overtake retail property as the best-performing sector, but he cautioned that returns would fall from the exceptionally high levels delivered in 2004 and 2005.
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