Confidence Returning for Commercial Investors

Commercial real estate investors have been enjoying a return of market confidence, it has been claimed. Writing for the Scotsman, Rachel Aird, investment director of real estate at Scottish Widows Investment Partnership, explained that the past few years had been turbulent for the sector....

Commercial real estate investors have been enjoying a return of market confidence, it has been claimed. Writing for the Scotsman, Rachel Aird, investment director of real estate at Scottish Widows Investment Partnership, explained that the past few years had been turbulent for the sector.

Indeed, she explained that negative sentiment had driven prices down dramatically, with returns falling 44 per cent over the two years from the summer of 2007. However, thanks to a rebound in property values investors are increasingly being drawn back to the sector.

This is being driven by much cross-border activity and the growing popularity of prime properties. Despite this, Ms Aird believes that fragile economies and concerns over government spending cuts in destinations will lead to "sluggish" rental growth for a prolonged period of time.

"We believe that direct property investment remains an attractive long-term play," she added. "With a stable and secure income and the potential for capital growth over the longer term, there is still a lot to like."

- Tuesday 21 September 2010

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