Industry professionals have come out predicting an improved performance in the months to come, for the already robust commercial property sector, further strengthening the argument of why it’s a vital element for any property investment fund’s portfolio.
Simon Morris on the Strength of UK Commercial Property
Recent reports suggest that more than 80% of real estate professionals expect the commercial property sector to perform significantly better in the next quarter than in the previous one, and Simon Morris is in full agreement.
Simon Morris is a London-based property industry professional with a specific focus on providing advice to property investment funds. He has extensive experience in several sectors of the market, including commercial. His observations of the recent trajectory of the commercial market, which have seen it provide investors with stronger returns than stocks and bonds, show that it is clearly a market on the rise, with a sustained capability to provide strong returns for your investment portfolio.
Highest Commercial Property Confidence Since 2010
This is certainly the view held by those on the ground, the country’s real estate professionals. The number of professionals who hold this opinion is officially strongest since 2010, when the bi-annual Commercial Property Confidence Monitor, produced by Lloyds Bank Commercial Banking, began.
Specifically, the monitor found that 88% of fund managers and 90% of large businesses hold the opinion that performance in the commercial property market is set to improve over the next quarter. This shows a marked improvement, when considering the fact that 46% and 38% respectively held this view at this point in 2013.
Commercial Property Values Are Increasing
The main thrust behind this marked change of opinion has originated from the widely held view that commercial property values are increasing. The monitor found that 67% of those questioned held this view. Specifically, a staggering 92% of fund managers expressed this view, and 34% expected the rise to be a significant one. This contrasts with only 10% of fund manager who expressed the latter view in 2013.
Managing director of mid-markets real estate at Lloyds Bank Commercial Banking, Marty Green, commented on the figures, saying: “The momentum seen in the market over the past 12 months shows no signs of slowing as we continue to see widespread improved confidence in our report. The market’s bullish attitude is perhaps best summed up by the reported indifference to a possible rise in interest rates, which could well happen in the next year to 18 months.”
These figures further show what property professionals have ascertained through the release of earlier figures. The commercial property sector is a secure opportunity for property investment funds in the current market.