Direct commercial property investment ''beats inflation'' commercial mortgages

23 May 2007

Experts are stating that direct commercial property investment could provide an effective buffer against the financial pressures of inflation, giving investors a means of protecting their returns in a climate of rising inflation.

It is thought that direct commercial property income has an ''inflation proofing'' nature due to the fact that UK commercial property rents are based upon long-term leases, up to 15 years or more.

For businesses with commercial mortgages, this could mean guaranteed strong returns irrespective of inflationary pressure.

Statistics from New Star Investment Funds show that direct commercial property income has outpaced prices as measured by the retail price index over the 20 years from 1986 to 2006.

"Inflation is a silent assassin and constantly erodes our personal wealth," stated Rob Page, marketing director.

"It should be the primary concern of every investor to beat inflation and during times of inflationary pressure investors would do well to consider direct commercial property."