UK commercial property delivered investors a 15.2% annual total return in 2010, according to the IPD UK Quarterly Property Index, in a year marked by polarised performance across geography and sector.

The annual total return comprised 8.3% capital growth and a 6.4% income return. The final quarter of last year delivered a 2.8% total return, reflecting 1.3% capital growth and a 1.5% income return.

According to research director Malcolm Frodsham, underlying last year’s 8.3% annual capital growth was a disconnect between falling yields, which had a positive impact on capital values, and modestly falling rents, which mitigated capital appreciation.