Insurance News Archive

Income returns 'will drive commercial property investment'

Property fund manager F&C REIT has predicted that demnand for the asset class from property owners is set to increase, driven by income returns on commercial property.

The strong performance of London compared with provincial towns gathered pace this year and is due to continue for some time due to austerity measures, added Guy Glover, fund manager at the F&C UK Property Fund.

"We remain positive on the commercial property market in London, however we anticipate the pace of rental growth here will slow somewhat from here," he added.

Mr Glover went on to say that there are still "pockets of value" all over the UK, and identifying these at the right time and price could be crucial for property owners who want a return on their investments.

Recently, Ezra Nahome of Lamber Smith Hampton said commercial property activity in London is returning to the 2006-07 period, although he agreed that there are still regional hotspots.

Posted by Dan Winters

21 Jul 2011