The future of the property investment market, which performed strongly in 2009, looks bleak, it is claimed.
Things are looking bleak in the commercial
property investment sector, courtesy of the government's public spending cuts, it is claimed.
Reducing the national deficit involves cutting spending and, in turn, staff. This will lead to empty offices and reduced yields, according to an article in the Daily Telegraph.
In 2009, property investment firms ploughed money into
commercial development funds, with the autumn of last year seeing this type of fund outperform all others.
Yet according to Ben Yearsley of Hargreaves Lansdown, there has not actually been much growth during this period.
"The funds' performance lags that of the index. So, there's not been much capital growth - although there is still a decent level of income to be had," he told the publication.
Real Estate agent CB Ricjhard Ellis claimed earlier this week that the rate of capital growth has slowed to 0.6 per cent month-on-month, indicating that the market is "clearly slowing".
Posted by Allan Flowers.
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