Growth in the commercial property market is likely to continue this year, albeit at a "subdued" level.
There has been a "renaissance" of activity among
commercial development investors since the recession has come to an end.
This is the suggestion from the Association of Investment Companies, which revealed that, on average, investment companies have boosted their share prices by 52 per cent over the past year.
ING Real Estate Income manager Michael Morris believes that this increase in
commercial finance activity will continue during 2010, albeit at a lower level.
"The UK real estate market witnessed a dramatic upturn in Q4 2009 as investors reappraised the attractiveness of the sector and a large wall of liquidity entered the sector, pushing up pricing, following falls of over 40 per cent in the preceding two years," he explained.
Mr Morris went on to say that, while this positive trend will continue, it will do so at a more "subdued" rate. He also highlighted the importance of occupational demand, which is needed at high levels to keep the "pricing momentum".
Over half (52.5 per cent) of respondents to a recent F&C survey said that now is a good time to invest in commercial property.
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