Small investors set sights on commercial property - commercial mortgages

29 May 2007

A growing number of smaller private investors in the UK are setting their sights on commercial property in line with the boom that has been evidenced in recent times.

Reports suggest increased activity in the commercial property sector from smaller investors, looking to capitalise upon demand for prime office space and lucrative investment opportunities.

The Guardian highlights figures showing that billions of pounds has been invested in commercial property funds over the past three years, with particular focus on Norwich Union''s Property fund and New Star Property, having grown to £4.3 billion and £2 billion respectively.

In the future this could signal an opening of the market to more investors, including those who would otherwise take out commercial mortgages.

One expert, Brian Dennehy of Dennehy Weller speculates that attentions may turn to international commercial property markets, amid concerns that the UK market may be set for a decline.

"Over the past five years almost every major asset class has gone up in a straight line, except international commercial bricks and mortar," he remarked.

"It''s a really underexploited market."