Insurance News Archive
Reits to boost commercial property investment
Commercial property in the UK is expected to receive a much-needed boost next year, with the introduction of real estate investment trusts (Reits).
It is thought that with the arrival of Reits and the widespread use of self-invested personal pensions (Sipps), many more people may feel they have access to the market.
Chancellor Gordon Brown announced that Reits would be making their way to the UK in this year's Budget speech, although they are already popular in other parts of the world, reports Assetz.
Reits offer a way for consumers to gain indirect exposure to property and it is a strategy that is appealing to increasing numbers of people.
"As existing markets expand and REIT-like structures are introduced in more countries, we expect to see the overall market grow by some ten per cent per annum over the next five years," comments Doug Naismith, managing director of European Personal Investments for Fidelity International.
It is thought that Reits will be welcomed with open arms, especially as people become more concerned with financial planning and retirement issues.
The Royal Institution of Chartered Surveyors has also claimed that Reits will allow the government to improve the efficiency of the commercial and residential property investment markets.
12 May 2006