Commercial property returns outstrip residential - commercial mortgages

24 April 2007

Investment returns in the commercial property sector have outstripped those in residential property according to reports in Property Executive, indicative of a healthy commercial property market.

Figures indicate that commercial property returns during 2006 were above those for residential property and equities, as businesses including those with commercial mortgages continued to seek out attractive opportunities.

Statistics indicate that residential and commercial property have delivered returns of almost 14 per cent over six years, notably higher than equities and bonds. Ian Cullen of the IPD highlights specialist investors as particularly responsible for strong performances to date.

"These impressive 2006 returns reflect the performance of a small group of specialist residential investors," he commented.

The British Property Federation recently reported that demand for specific, tailored properties in the capital is boosting London''s commercial property market as businesses look towards the capital for properties in desirable, prominent locations.