Now is a ‘Good Time’ to Invest in Commercial Property

Now is the time for individuals to invest in commercial property, it has been claimed. Capital Economics chief property economist has said that the asset is currently looking increasingly well valued in comparison to bonds, equities and residential property....

Now is the time for individuals to invest in commercial property, it has been claimed. Capital Economics chief property economist has said that the asset is currently looking increasingly well valued in comparison to bonds, equities and residential property.

In particular, Ed Stansfield expressed his belief that UK commercial property would perform strongly in the coming months. He explained that the UK’s economic recovery will remain "sluggish" and concerns surrounding inflation would ease, helping to create favourable conditions for the commercial property market in the country.

"The spread between interest rates and the Investment Property Databank All Property Yields Index is close to its ten- year high, which means that commercial real estate has the ability to generate income today with potentially high returns on capital investment," he added.

A recent report detailing the health of European office property markets found that after two years of upheaval, there are now signs of recovery. In particular, European markets such as London, Paris and Geneva have benefited from a strong resurgence of business in their respective regions, according to the King Sturge’s European Office Property Markets report.

- Wednesday 13 October 2010

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