A new survey from Reita, the property investment association, has found that most IFAs expect commercial property prices to go up in the next 12 months.
The survey found that 71% of independent financial advisers expect commercial property prices to rise between 1% and 14%. This is compared with just 24% making the same prediction last July.
Only 6% now think commercial property will fall in value during the next year, compared with 40% in July.
Nearly 80% of those surveyed were untroubled by the possibility of excessive demand for property funds. 19% of IFAs were worried that investors may “pile into” the commercial property asset class after the falls of the last three years.
Commenting on the survey in FT Adviser today, Informed Choice chartered financial planner Martin Bamford said:
“Commercial property, particularly in the UK, is one of the more attractive asset classes in the current climate. Yields are looking very competitive for income seekers.
“Investors who are able to view property as a longer term investment, within a diversified portfolio, should consider now to be an opportunity to increase their allocation, as long as they are investing with their eyes wide open.”