18-09-2006
Interest in commercial property investment is ongoing
Commercial property investment is creating substantial public interest and should continue to do so in the foreseeable future, forecasts suggest.
The annual commercial property forecast, published today by the Royal Institution of Chartered Surveyors (Rics), indicates that individual private investors are continuing to be attracted by high commercial property returns which remained close to 20 per cent for the second consecutive year in 2005.
Oliver Gilmartin, an economist at Rics, said: "The doors to commercial property are opening up to a much wider audience and individuals are beginning to appreciate that this kind of investment can generate income whilst exposing them to comparatively reduced risk."
Mr Gilmartin also revealed that investors are spreading their investments across a range of asset classes and geographical regions and predicted a further increase in tax sheltered savings plans such as ISAs and self invested pension schemes (Sipps).
While economists believe that investors will continue to see good returns on UK commercial property, Rics predicts that a slowdown in purchaser activity will lead to a decline in total commercial property returns of 17 per cent in 2006 and nine per cent in 2007.
