Economic uncertainty ‘will help the commercial property market’

Posted 07/09/2010

Commercial property will retain its appeal because of continuing economic uncertainty, one expert has said.

Ian McBryde, manager of the Isis Property trust, told Fund Strategy magazine that bond yields have fallen to a record low, which is making commercial property more attractive.

“Although we’ve seen a significant increase in capital values in the first half of the year, we think that the yield story for property remains good,” he commented.

However, Mr McBryde warned investors against looking for a quick profit, as he said he thinks returns are only likely to be around 11 per cent this year.

Well-let prime property with a steady income stream was recommended as the best type of commercial property to buy.

Last month, Douglas & Gordon director Ed Mead said there is currently a lot of interest in commercial property in London, as it is seen as a safe haven, both economically and politically.