Commercial real estate analysts IPD UK recently revealed that UK property returns increased markedly for the 2011 year.
The IPD UK Monthly Index increased 8.1 percent, which signals total investment returns for the 2011 year. In addition, capital growth increased 1.2 percent and income return rose 6.8 percent.
"While growth for the year remained positive, the outlook for 2012 is less than ideal," said Phil Tily, managing director of the UK and Ireland for IPD UK. "During the last three months of the year, as the Euro situation worsened and the threat of recession increased, returns tailed off considerably."
While overall return was positive, there were some points in the report that may make experts remain cautious. City offices declined 0.1 percent during the year, while retail also took a hit, according to the report. Rental values for the retail sector dropped 0.9 percent for the 2011 year, while they fell 0.1 percent in December.
With returns slowing down due to the European economic crisis, Tily added that hopes may be dialed back a bit in 2012 compated to what they were in 2011.