Commercial mortgage holders investing in 'most attractive unlisted market'

05 August 2010

Written by Michael Aglony

Commercial mortgage holders in the UK are involved in the most attractive unlisted market in the world, according to one organisation.

HSBC's Global Investment Perspective report recently suggested that in terms of valuations and supporting investor demand, Britain was the global leader of the sector.

Ed Stansfield, property economist at Capital Economics, explained that the market had seen "one of the bigger corrections" in 2007 through to early 2009, but has also experienced a large upswing.

"The UK does have a number of advantages in terms of size and liquidity," he noted, "[but] there is not a lot of evidence to suggest that the UK market has become overvalued."

Elsewhere, US commercial real estate was seen by HSBC as near to bottoming out, while the industry's success in Europe was mixed.

The bank also noted that the outlook for rental growth was improving slightly, although it still remained weak.

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