Commercial property outperforms other assets - commercial mortgages

01 February 2007

The latest figures produced by the Investment Property Databank reveal that commercial property delivered higher returns that other asset classes during 2006.

Investors, such as those with commercial mortgages, saw their properties provide returns of 17.9 per cent last year, compared with the 16.8 per cent returned by equities and -0.1 per cent by gilts.

Commenting on the commercial property market, Richard Auterac, joint head of auctions at Jones Lang LaSalle, said that although the residential market remains popular, investors are increasingly channelling funds into this sector, What Investment reports.

"We all know how investors have been snapping up residential property, but figures confirm private investors are casting their net wider and are going for the long-term benefits of commercial property.

Investors in commercial property are aware of the "long-term fundamentals", such as economic growth and employment, which are currently supporting the market''s strong position, he added.