The recovery is poised to move down a gear

Since the previous Analyst, we have slightly increased our projection for 2014 all-property capital value growth from 12% to 14%. But as yields find a floor next year, the forecast that capital values will rise by 4% in 2015 and by a rent-driven average of 2% a year over 2016-18 is unchanged.  In other words, the UK commercial property market is poised to move down a gear, but in our view the upturn will not go into reverse anytime soon.