Returns from European commercial property assets may fall behind those of equities after a period of strong gains, particularly if interest rates rise further, according to a report by Goldman Sachs.

The report said: "The outlook for property rental growth remains subdued, and higher property could be the catalyst for underperformance."

Goldman Sachs view on the property sector is "cautious".

Based on current earnings, the net operating profit after tax (NOPAT) yield of listed real estate is 5%, compared with 6.3% for equities. Historically, such a gap is normally followed by a slowing property market the report said.