The UK may have seen a rise in commercial property investment values, but this does not mean that the assets are overvalued, it is claimed.
Recent rises in asset values do not overvalue commercial property in the UK, according to an economic research consultant.
In actual fact, the recent strong recovery seen by the UK
property investment market is merely a positive reaction to one of the sharpest crashes seen by any country during the global downturn, claims Capital Economics' Ed Stansfield.
A recent report from HSBC has suggested that the unlisted UK commercial property market is the most attractive to global investors.
Strong valuations mean that the outlook for the future remains strong - despite relatively weak rental growth, the lender says.
Mr Stansfield agrees with this view to a point, as the UK does benefit from advantages in terms of size and liquidity, but whether it has the most competitive prices is still open to debate.
"Nevertheless, I still think that the bottom line is that there is not a lot of evidence to suggest that the UK market has become overvalued as a result of the upswing," he concluded.
Posted by Hadji Singh.
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