The RICS cast further gloom over the outlook for commercial property, predicting a 5% fall in prices this year and next. Financial Times
The RICS said there would be a ‘short and sharp’ adjustment that would force yields upwards. Oliver Gilmartin, senior economist at the RICS, forecast that average yields would end the year at 5%, up 30-40 basis points from January. Nevertheless, it cut its annual forecast for total returns for the year from 8% to 3%, predicting total returns of zero next year as yields continue to rise – to about 5.3% – and effectively wipe out the rental income from properties.