According to property experts Knight Frank, 2013 saw commercial property in the UK outperforming other investment types by a significant margin. The average yield for commercial investments in the first quarter of 2014 was 12.7% with prime Central London residential property coming in second place at 10.6%.
In the Lloyds Bank "Private Banking Sector Investor Sentiment Index" published in March 2014 there is encouraging news that investors are increasingly looking to the UK's property market for the best returns. Since the beginning of 2013, investor sentiment towards UK property has increased by 50% climbing from 9% to a staggering 59% in less than 12 months.
Heightened investor confidence in UK asset classes can only be good news to the economy as a whole. 75% of respondents to Lloyds Bank's Survey expressed a belief that the UK economy would make a moderate recovery in 2014 with commercial property leading the charge.
Recent positive economic indicators are also adding buoyancy to the commercial property sector as the UK's economic improvement filters through into property returns. This positive outlook and the attractive income returns on offer continue to draw investors in to the commercial property market with auction houses reporting significant increases in the number of first-time investors in recent months.
Collier International's 'Property Pricing Survey' published in March 2014, reports of continued strong interest in the UK's commercial property sector, mainly across the office and industrial sectors, with selective interest in retail. With growth in rental and capital values, investors will be further incentivised to consider the commercial property market throughout 2014.
- Tuesday 06 May 2014