Confidence in UK commercial real estate is close to reaching its peak, according to the Investment Property Forum (IPF).
The research, part of the IPF鈥檚 2011-15 programme, found that forecasts for next year and beyond were 鈥渕oderate鈥�.
Average capital value growth rates are expected to fall back substantially next year, IPF said.
Rental value growth is expected to fall to 1.9% by 2018, with the rate of capital value decline predicted to accelerate to just below zero.
IPF said wide variations between individual sectors would 鈥渄iminish with time鈥�.
鈥淎s total returns forecasts reduce, the performance rankings between sectors shift,鈥� IPF said.
The industrial sector is set to outperform the office sector in 2016, with the latter expected to be the weakest market segment.
In the short-term, however, annualised rental and capital value growth rate averages increased over the third quarter, to 2.7% and 3.6%, respectively.
IPF said the growth was the result of further improvement in near-term expectations.
