A prime beneficiary of the recent fall in interest rates, which has seen the yield on ten-year gilts fall from 4.8% in the summer to below 3.5%, has been the commercial property sector. Property valuations are based on the stream of rental income they generate, discounted to the present day by the risk-free interest rate: the yield on long-dated gilts.
In addition, the appeal of real estate investment trusts (Reits) is their high dividend yield relative to that available on
