Commercial

■ Prime London offices and retail

The best prospects for double-digit rental growth this year, with the West End remaining heavily undersupplied and City yields looking attractive.

■ Top seven regional city office markets

Falling vacancies, recovering tenant demand and no development activity will drive a rental recovery from 2014. Yield spread over London looking interesting.

■ Big sheds and local hubs

Continued growth of internet retailing will drive demand for large warehouses for big retailers and 3PL operators. Challenge of 'last mile' will drive interest in local hubs.

Residential

■ London and the South East

Most major cities offer investment opportunities but we expect a focus on London & the South East where capital growth prospects are strongest.

■ Second tier London boroughs

Such markets have the potential to deliver the next phase of price growth in the capital without undue reliance on mortgage debt.

■ Rich markets in London's hinterland

With London having outperformed the rest of the UK since 2005, these markets are likely to benefit most from the ripple effect in the short to medium term.

Agricultural

■ Large commercial arable farms

Will continue to benefit from a flight to quality with buyers focusing on cropping flexibility and yield targeting farms with top quartile income potential.

■ Quality rural estates

Signs of a recovery will improve activity from lifestyle buyers for estates with a diverse property portfolio offering income potential free of commodity price volatility.

■ Residential farms

With the residential market forecast to recover the potential uplift in residential farm values may offer some opportunities but location and quality will still be key.

Taken from
Spotlight: Key Themes for UK Real Estate in 2014