Investors Urged to Consider Commercial Property
Such is the confidence in residential buy-to-let investment at the moment, commercial property opportunities have perhaps been overlooked by many, but experts are encouraging investors to take a second look.
Within the UK, there is a booming commercial property industry in all of the major cities and it is generally focussed on office buildings. According to unison.ie, Irish investors may well have the upper hand in this respect, with Standard Life revealing that they now own more than €17 billion worth of UK commercial property.
James Rushworth, manager of the Standard Life fund, told the website that he predicts a 15 per cent return for the UK property market this year, which is a statistic that cannot be ignored by those who tend to limit themselves to residential property.
"We favour office over retail and industrial property for 2006 because of the improving employment trends, particularly in central London," Mr Rushworth announced.
"There are proven links between an improving stock market, increased merger and acquisition activity and subsequent increased demand for office space - all of which prevail in the UK currently," he continued.
Manchester and Liverpool are also attracting a vast amount of attention in this respect, with regeneration projects having a significant impact on potential returns on commercial property investment.
Commercial property can also provide a lucrative source of income for investors willing to spread their wings and look overseas.
According to the Sofia Echo, for instance, countries in Central and Eastern Europe (CEE) are enjoying a remarkable period of growth that is set to continue for many years. The annual Central Europe Property and Investment Fair (CEPIF) in Warsaw in May is expected to be more popular than ever this year, with investors keen to reap the benefits of some of the world's most exciting property markets.
"There is probably no other region in the world like CEE that has been experiencing such a boom in demand and supply of property in the past few years," Ivan Vatahov said in a report for the Sofia Echo.
"Large real estate investment projects, lending and economic growth, new technologies in construction and many more novelties are creating the appeal of an area that forms more than half of Europe and is destined to become highly developed in the next decades," he added.
The European Research Group of Cushman & Wakefield (C&W) has been analysing the progress of the economies in a number of European countries and the Sofia Echo reports that the findings are encouraging.
It is thought that a gradual fall in unemployment, declining inflation levels and increased consumer spending are all boosting economic conditions in the region, while gross domestic product growth is also on the rise.
As people increasingly look for "the next big thing" in an attempt to maximise returns, the emergence of the likes of Poland and Bulgaria as viable locations for commercial property investment is undoubtedly appealing to astute investors.
While C&W reports that there was a 40 per cent year-on-year increase in the amount of investment in CEE institutional property in the first half of 2005, other investors are also continuing to take advantage of a buoyant UK market, which shows no sign of weakening.
Within the UK, there is a booming commercial property industry in all of the major cities and it is generally focussed on office buildings. According to unison.ie, Irish investors may well have the upper hand in this respect, with Standard Life revealing that they now own more than €17 billion worth of UK commercial property.
James Rushworth, manager of the Standard Life fund, told the website that he predicts a 15 per cent return for the UK property market this year, which is a statistic that cannot be ignored by those who tend to limit themselves to residential property.
"We favour office over retail and industrial property for 2006 because of the improving employment trends, particularly in central London," Mr Rushworth announced.
"There are proven links between an improving stock market, increased merger and acquisition activity and subsequent increased demand for office space - all of which prevail in the UK currently," he continued.
Manchester and Liverpool are also attracting a vast amount of attention in this respect, with regeneration projects having a significant impact on potential returns on commercial property investment.
Commercial property can also provide a lucrative source of income for investors willing to spread their wings and look overseas.
According to the Sofia Echo, for instance, countries in Central and Eastern Europe (CEE) are enjoying a remarkable period of growth that is set to continue for many years. The annual Central Europe Property and Investment Fair (CEPIF) in Warsaw in May is expected to be more popular than ever this year, with investors keen to reap the benefits of some of the world's most exciting property markets.
"There is probably no other region in the world like CEE that has been experiencing such a boom in demand and supply of property in the past few years," Ivan Vatahov said in a report for the Sofia Echo.
"Large real estate investment projects, lending and economic growth, new technologies in construction and many more novelties are creating the appeal of an area that forms more than half of Europe and is destined to become highly developed in the next decades," he added.
The European Research Group of Cushman & Wakefield (C&W) has been analysing the progress of the economies in a number of European countries and the Sofia Echo reports that the findings are encouraging.
It is thought that a gradual fall in unemployment, declining inflation levels and increased consumer spending are all boosting economic conditions in the region, while gross domestic product growth is also on the rise.
As people increasingly look for "the next big thing" in an attempt to maximise returns, the emergence of the likes of Poland and Bulgaria as viable locations for commercial property investment is undoubtedly appealing to astute investors.
While C&W reports that there was a 40 per cent year-on-year increase in the amount of investment in CEE institutional property in the first half of 2005, other investors are also continuing to take advantage of a buoyant UK market, which shows no sign of weakening.
posted by Unknown | 12:31 AM
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