Commercial property ‘looks attractive to investors this year’

Posted 10/03/2010

An increasing number of investors are likely to return to commercial property in 2010 as they perceive the sector to be recovering from the economic downturn.

This is the discovery of a new report from Investec Private Bank, which showed that 45 per cent of investors plan to put more money into commercial property this year, with nine out of ten saying they intend to maintain or increase their allocation.

Industrial properties are expected to perform the best, while a higher demand for development project loans has also been noted.

Some 23 per cent said they expected values to increase.

Investec spokesperson Paul Stevens said: “Market conditions are likely to remain stable over 2010 and UK commercial property is looking increasingly attractive to many investors.”

CB Richard Ellis recently reported that commercial property values in the UK increased by 1.4 per cent last month compared with the 0.9 per cent rise seen in January 2010.