The total return on All Property in Belgium was 9.0% in 2006, a strong performance
compared to the previous year, at 6.6%. Although property under-performed the Belgian
equity market, which returned 23.7%, the bonds market only achieved 1.0% in 2006, says IPD.
The good result on all Property was due to the increased capital growth, at 3.0%. In 2005 capital growth had contributed only marginally, at 0.5%. Income return continued to dominate the total return figure, although dropped off slightly to achieve 5.9% in 2006.
The retail sector saw the strongest performance in 2006 and outperformed all sectors reaching 16.4%, more than doubling the total return of the previous year. Industrials continued to perform well, at 10.6%, whilst offices lagged behind and returned 7.3%.
Capital Growth in 2006 increased in the office sector, to 1.4%, and more significantly to 9.8% in retails. The industrial sector saw a small drop in capital contributions, to 3.4%, with almost no change in rental values.
The 9.0% total return from commercial property in Belgium was ahead of returns for Germany, Austria, Switzerland and Italy but below the IPD Pan-European Index return of 13.3%.
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