Strong Yields Drawing Investors to Commercial Property

Potential property investors are being drawn to the commercial market by the prospect of strong yields, it has been suggested. Merrill Lynch Wealth Management's annual investment outlook statement revealed that the commercial sector is once again proving to be an attractive investment vehicle for buyers....

Potential property investors are being drawn to the commercial market by the prospect of strong yields, it has been suggested.

Merrill Lynch Wealth Management's annual investment outlook statement revealed that the commercial sector is once again proving to be an attractive investment vehicle for buyers.

"Real estate yields can now deliver returns more than four percentage points higher than equities and more than six percentage points higher than inflation-protected bonds," the Financial Times quoted the company as saying.

And this outlook is seemingly shared by investors, with recent research conducted by Colliers International suggesting that investors are now showing more confidence in the market than they did six months previously.

Of those questioned in the company's Global Investor Sentiment Survey, 90 per cent said they were planning to add to their existing holdings or maintain them in the coming year.

The research found that the majority of markets are on the rise thanks to falling vacancy levels and higher rents and an increase in demand, while over a quarter of participants said they would consider investing in property outside of their home country.

- Tuesday 07 December 2010

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