Commercial mortgage holders 'to see rental growth in quality properties'

07 January 2011

Written by David Whittaker

Commercial mortgage holders will see higher rents in the best quality properties in good locations, it has been predicted.

Speaking to Investment International, Portfolio Manager for Fidelity's UK Real Estate Fund and director of UK Real Estate Alison Puhar explained these assets will be the focus of the increases but other properties will see the sector get past its lowest point this year.

"As investors realign their expectations for rental growth, price corrections will follow and provide opportunities in these high quality second-tier markets," she said.

The expert recommended concentrating on choosing real estate based on property fundamentals and concentrating on low income yields this year.

According to the news provider, bargains can be expected in the sector in 2011 after capital growth boosted the market in the last 12 months.

Simon Reynolds, partner at surveyors GVA, recently told the Manchester Evening News that commercial property investors in Manchester could expect to see a strong performance in the coming year.

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