Property hits its sweet spot

Reflecting an upgrade to our medium-term Central London office rent expectations, our forecast for all-property capital value growth in 2014 has risen from 8% to 9%, and for 2015 from 5% to about 5.5%. But rather than small forecast changes, the main message is that this commercial property upswing will remain rapid for the next six to 12 months before slowing in 2015 as rents take over as the main driver of capital gains. Good secondary and other non-prime property in the regions will increasingly lead the recovery.