"With commercial property yields relatively low, real estateinvestors are asking, 'Is the party over?'" says Timothy Bellman,global head of research at ING Real Estate, in a statement. "Ouranswer is 'no' but there will be significant variations inperformance by sector and by region. The global movement of capitalis changing the nature of investment opportunities."

Specifically continental Europe will see market improvements.The report cites Europe's recovering economy, healthy marketfundamentals and the possibility of a significant yield re-ratingin the years ahead as indicators of the good months ahead. Forexample, England is slated to see moderate performance in both theindustrial and the retail sectors; with the office and residentialmarkets showing more growth potential.

"Because of increased transparency, liquidity and strongperformance in recent years, real estate has emerged as a widelyaccepted asset class and, as a consequence, investors haveincreased their exposure to real estate," says Maarten van derSpek, managing director of European research and strategycontinental Europe. "With fundamentals generally healthy andimproving, earnings growth should also continue to support steadyincome returns and we expect the strong capital inflow tocontinue."