Public still positive over commercial property - commercial mortgages

22 October 2007

Research from the Association of Investment Companies (AIC) has revealed that the majority of the public are still confident over future prospects for the commercial property sector.

The AIC study found that 55 per cent of the public are still of the opinion that commercial property will rise in value.

The findings also revealed that 37 per cent of active investors, many of whom may have commercial mortgages, are also optimistic over the sector''s performance moving forwards.

Both groups said that fears of a market crash were not playing on their minds, with property a chosen investment vehicle for many because of its long-term prospects.

"Investing in property can be a useful way to diversify an investment portfolio and thus reduce risk," said AIC communications director Annabel Brodie-Smith.

"Property investment companies give investors access to a wide range of commercial property both overseas and within the UK and have a closed ended structure which is particularly appropriate for property, an illiquid asset," Ms Brodie-Smith added.

Further good news for investors could come from the Bank of England, which is set to cut interest rates at least once over the next few months, according to current analyst predictions.