IFAs currently consider commercial property to be a better investment than residential assets, a new survey claims.
A recent poll of independent financial advisers (IFAs) has found that they currently consider commercial developments a better
property investment than residential ones.
Of the IFAs involved in the Reita survey, two-thirds believed commercial property values would rise by as much as 14 per cent in the next year.
Only 59 per cent of IFAs predicted such a rise in October 2009, while just 24 per cent thought this way in July 2009.
There were words of warning from Reita chair Patrick Sumner, however, as he said that the rise in the value of commercial developments reflects a recovery in the financial markets rather than the wider economy as a whole.
"Demand for property stocks is unlikely to improve – at least among general equities funds – until rental growth turns positive. Outside London, that is still some way off," he added.
Mr Sumner's words echo a warning from the Financial Times earlier this week, as it suggested that growth in the London commercial property market was masking the fact that growth was very poor in other areas of the country.
Posted by Allan Flowers.
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