Andrew Jackson, head of property research at Standard LifeInvestments says that over a period of 30 years property hasoutperformed bonds but underperformed equities. Over a period of 20years, however, it has underperformed both. As a result, propertynow offers investors a significantly greater yield margin over theother two asset classes.

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

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