Commercial property ''set to bounce back'' - commercial mortgages
19 May 2008
In news which may interest those thinking of taking out commercial mortgages, some analysts have said that commercial property is set to bounce back from the credit-crunch influenced slump, it has been reported.
Director of Wilson Dean financial services Mark Lincoln told Citywire that while the firm was "ambivalent" about the short term, in the longer term "property returns will revert to their mean, offering returns above risk-free alternatives".
Another to give a positive assessment of the prospects for investment in the sector was Arthur Childs, managing director of Arch Financial Planning.
He said it was worth remembering that yields were higher than other assets and the market had more stability than gilts, commenting that this "may partly explain why some funds are reporting positive inflows again".
Chris Morrogh, director of Threadneedle Property Investments also took a positive view, saying the situation was much sounder than in the early 1990s because there is not the same level of oversupply.
These positive assessments may lie behind the decision of Morgan Stanley to launch a new saving product in anticipation of the revival of the market.
Its UK Commercial Property Growth Plan 1 will track the rate of the Investment Property Database annual capital growth index until December 2013, it announced via Citywire.
