Commercial Finance Specialists

The commercial property market's strong outlook for 2010 makes it the most favourable area of asset management, it is claimed.

The UK property investment market is currently one of the strongest areas of asset management, according to a leading pensions provider.

This is due to the fact that commercial developments provide a consistent income, while the property market itself has a better long-term outlook than many other areas of asset management, claims Royal London Asset Management (RLAM).

RLAM adds that the involvement of banks will be key to growth in the sector as many own large portfolios, but they are expected to achieve maximum value by working them back to the market rather than just dumping them.

This will provide property investment firms with some excellent deals, according to RLAM's Gareth Dickinson.

However, he also believes that the rental values will remain soft and few new commercial development projects will get off the ground.

In contrast to this optimism, the Investment Property Databank claimed earlier this week that the momentum is disappearing from the commercial property market, with growth at its lowest rate since it returned in August 2008.

Posted by Lisa Fear.