The latest RICS survey of conditions in the commercial property market was broadly positive, said the institute, adding that the balances for tenant and investor demand, as well as capital and rental value expectations, were all positive. But there was also some evidence that office and retail occupiers have put off expansion and relocation decisions.

According to RICS surveyors, both investor and tenant demand strengthened a touch in the fourth quarter. Indeed, the balance of surveyors reporting a rise in investor demand rose to 21%, up from 9% in the third quarter.

However, the strength of occupier demand was driven by the industrial sector, while the strength of retail demand eased a little, and office demand was essentially flat thanks to a moderate fall in London.

RICS concluded that the survey did nothing to suggest that a major downturn is imminent, but it did forecast that industrial property will deliver the strongest returns over the next year or two, while central London offices will under perform.