IPD said that its Portuguese Property Index, Imométrica, returned 12.4% last year, the highest total return since 2002. The figure represents a slight increase on the 12% return reported at the end of 2006. Over full-year 2007, the 12.4% total return on property significantly outperformed bonds which had a total return of 2.4%. Equities however outperformed all property, with total returns of 19.8%. Capital growth rose to 6% in 2007 from 5.4% in 2006, while income return fell from 6.3% in 2006 to 6.1% in 2007. Retail was the best performing sector with a total return of 14.9%, followed by industrial at 10.5% and offices at 8.2%.
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