No reason to believe commercial property is overvalued, potential investors told

Posted 05/08/2010

Those looking to invest in commercial property have been assured that recent comments from HSBC are misinformed.

The global bank suggested that the sector is currently a positive one, but recent expectations that it would perform better than it has could put off those who believe that property in the UK is being overpriced.

Ed Stansfield, property economist at Capital Economics, rebutted the claims by saying that despite large corrections in price data over the past few years, those looking into property purchase have seen a big upswing.

‘I still think that the bottom line is that there is not a lot of evidence to suggest that the UK market has become overvalued as a result of the upswing,’ he explained.

HSBC’s Global Investment Perspective report also claimed that France and Scandinavian countries could be a good choice for commercial property investors, while eastern Europe, Spain and Greece are more shaky.