Commercial property market attracts investors

09/03/2010 09:32:06

An upbeat view of the market has left nine in ten real estate investors planning to either hold or increase their exposure to the UK commercial property sector this year.

Research conducted by Investec Private Bank shows that, of a group of 370 fund managers, wealth managers and private investors polled in January, 45 per cent said they envisaged raising their level of investment in commercial property in 2010.

Meanwhile, a further 47 per cent said they are likely to keep the size of their allocation on hold over the next few months.

"This reflects our view that despite the prospect of rising defaults, market conditions are likely to remain stable over 2010 and UK commercial property is looking increasingly attractive to many investors," commented Paul Stevens, head of Investec's Structured Property Finance division.

Other results of the survey include the fact that 54 per cent of respondents think valuations will stabilise this year, while 23 per cent envisage an increase.

Last week, Property Wire reported that Standard Life Investments believes returns of 25 per cent could be made on commercial property investmentover the next three years.

Posted by Emma Davies

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