Are falling stock markets, dwindling gilt returns and low cash yields depressing the value of your personal wealth or pension?

If you are like myself and the vast majority of Ireland's working population, who rely on pension fund managers to provide for your retirement, then you should be concerned. Pension fund managers themselves are concerned. Ask them. My advice to myself, you and the protectors of our future financial health is - property can be a big help.

Before expanding my thoughts, I should first put them in context for you. As an investment director at one of the country's top property firms (with an unashamedly biased view), you may automatically assume that I have a vested interest in this proposition, but please hear me out.

This is an attempt to give you an objective view, one borne out of experience of investing across the different media including shares (and suffering direct financial pain as a result). This is not intended to prop up a failing property market, but is rather a "don't panic" message, particularly intended for those who are hearing anti-property sentiment coming from certain quarters.

Misperceptions have a danger of becoming reality and matters are not being helped at the moment as some front-line, unit-linked property funds close their doors temporarily to cash withdrawals and charge heavily for exiting.

While no one wants to have to assess the impact of last week's attacks on the United States, the harsh reality of life demands that we do.

There is an unclear global economic future ahead of us. As that future unfolds, equity markets will undoubtedly gyrate. While this will offer some players prospects of trading gains as they work the momentum of the markets, it will not be a place for the faint-hearted investor. Prime property must have compelling appeal.

This is a moment for calm and rational examination of the property argument. It is in times of uncertainty - as we are experiencing now and perhaps for the next few years - that pension funds and private investors need to remember the traditional characteristics of property, such as the following.

You can see it and touch it (the bricks and mortar argument).

In today's world of electronic communications, despite predictions to the contrary, most companies still need buildings from which to operate their business.

Property produces an income stream which generally does not decrease (witness five-year, upward-only rent reviews in Ireland and the UK and annual, inflation-proof indexation of rents in most Continental European markets).

Much of the return from property, (on average 5 to 7 per cent per annum) comes from its ongoing, fixed income stream, unlike much lower dividend yields averaging anything from 1 to 3 per cent (if and when they are paid).

You can borrow against property (and sleep soundly at night).

Property is tax-efficient, attracting interest relief on borrowings and 20 per cent Capital Gains Tax.

Of course, I wouldn't be giving a balanced commentary if I didn't acknowledge commercial property's drawbacks, relative to equities. It has been difficult to "get into" property in Ireland. But this has not been the case with publicly traded equities.

Property can be lumpy and illiquid, and generally involves relatively high transfer costs - but provided you accept that bricks-and-mortar investments are fundamentally a long-term play, these disadvantages diminish with time.

There is general acceptance that the unprecedented growth of rental and capital values of recent years is unlikely to be repeated in the medium term. Being realistic, we need to become accustomed once again to more modest returns, and this applies to all types of investment.

Direct or indirect property holdings through unit-linked funds are no longer delivering the 20 to 30 per cent annual averages of recent years. However, they should not be jettisoned.

Property is in danger of being punished for its relatively spectacular performance of recent times.

If you have invested in real estate over the last five years to tap this performance, then reinvest in it now for its core values of stable returns and low volatility.

There is no reason to suggest that, in light of the benefit of sensible gearing - which we agree property lends itself to - a return on equity of 10-15 per cent per annum is unrealistic. This is particularly the case given that much of property's performance comes from income flows, which are generally quarterly, in advance, from the first day of ownership.

Commercial property displays the same general characteristics, whether it is located in Ireland, the UK or Continental Europe. Many shrewd private investors are realising its generic benefits and spreading the ever-increasing low risk allocation of their capital across new markets.

This is being done directly and in many cases through syndication, which, by virtue of reducing exposure to any one property achieves even greater diversification - further enhancing property's well deserved low-risk tag. Historic performance data benchmarked against bonds and equities reinforces this.

But to get back to my original proposition, property has an even more important part to play in wealth-creation and protection in today's and tomorrow's forecasted economic climate. I ask you not to rely on my coloured view, but to form your own "informed" view.

Firstly, you should ask the following difficult question of your financial adviser or fund manager: can he or she confirm that the reason why pension funds are overweight with property has been because of tumbling share prices in parallel with property outperformance?

Property, however, notwithstanding its performance is being made a scapegoat - and many fund managers are becoming forced sellers of real estate to re-establish their notional property/bonds/equity/cash balance.

Could they not, for a change, rationalise what is happening and avoid automatic sell instructions for property, which are driven by share underperformance.

I believe they should take the contrary approach, and add to their property weightings.

Secondly, for comfort, you should ask research-driven, long-term, strategically-minded private investors where they are putting their money today. Don't be surprised if the answer is property.

Liam Lenehan is a commercial investment director at Hamilton Osborne King