Ignis predicts consensus-busting returns for UK commercial property in 2014

Ignis Asset Management is forecasting an 11.5% total return for the UK commercial property next year, above consensus forecasts which are themselves at their highest levels post-crisis.

Last month's IPF Consensus Forecast predicted an average total return figure of 9.3% for next year, the highest since the 18.9% return seen in 2006. Ignis's latest forecast is 2% stronger than those consensus expectations for next year, with offices expected to be the top-performing sector at 13.8%. Despite widespread concerns of the property market overheating, George Shaw (pictured), manager of the £1.1 billion Ignis UK Property fund, said yields could sustain a re-rating in 2014 without entering bubble territory. "Since the market started to recover in 2009, a more appropriate a...