Commercial Investments have Potential

Standard Life Investments has claimed that investments in global real estate could see returns as much as 30 per cent over the next three years...

Standard Life Investments has claimed that investments in global real estate could see returns as much as 30 per cent over the next three years. Anne Breen, head of real estate research and strategy at Standard Life, predicted that the asset class should continue to provide healthy solid income returns over the next few years

However, this view is based upon the assumption that major economies might see weak or even stagnant growth but will not experience a double dip.

"Real estate should continue to provide healthy solid income returns over the next few years with an additional growth in capital values and rents when tenants do begin investing further in business expansion and are faced with a lack of choice," Ms Breen said.

Indeed, the expert added that provided investors avoid "risky" markets they could see returns of between eight per cent and ten per cent per annum over the course of the next three years.

- Monday 13 December 2010

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