Charities have been advised not to neglect potential property investments in 2005.
Schroders says property prospects for the next few years "look very attractive", particularly in terms of rental income.
"Occupier demand for accommodation has increased and is putting upward pressure on rents," said a spokesman.
"In particular, the important central London office market has turned the corner after three years of falling rents. Combined with strong investor demand, property values and returns have been rising," he added.
The asset managers cited property as the best performing asset class over one, three, five and 10 years and has outperformed equities over the last 15 years.
It did, however, warn that announcements on the introduction of lease reforms and Property Investment Funds, which will increase access to property, were potential threats to the security of rental income to investors.