New research from Lloyd’s has shown Simon Morris that UK commercial property delivered the highest investment returns among nine key asset classes for 2014.
Simon Morris is a London-based property investor. In this capacity, Simon uses his expertise to show UK property investment funds how to reap high returns on their property investment portfolios.
In Simon’s experience, the most effective way to determine whether to invest in a particular facet of the property market is to explore the trends that characterise it in the long-term. With this in mind, new figures suggest that the UK’s commercial property sector is one destined to deliver high returns.
UK Commercial Property Delivers 20.1% Investment Returns
According to City A.M., Lloyd’s Bank released new research last month which showed that UK commercial property measured investment returns of 20.1% in the first 10 months of 2014.
Therefore, it was the strongest asset class amongst the nine key asset classes determined by Lloyd’s Bank. It’s nearest competitor was global equities at 12.8%. Last year global equities topped the rankings at 28.5%. This was followed by UK residential property, which powered by 2014’s housing boom, delivered investment return gains of 11.3%.
Improving Investor Confidence
Head of investment policy at Lloyds Bank private banking, Ashish Misra commented on the performance of commercial property. Misra noted that: “Investment returns on UK commercial property have been boosted as investor confidence has improved on the back of a positive economic outlook.”
Misra went on to analyse the performance of commercial property in more depth. The investment policy head suggested: “Whilst demand in London has driven returns for much of the period, recovery in the regions appears to be coming through more strongly now as well.”
Invest Effectively to Reap the Benefits of Commercial Property
In other words, UK commercial property performed so well in 2014 that investors saw high returns throughout the market.
This shows that as we enter 2015, commercial property is an attractive investment for any UK property investment fund. Yet in Simon Morris’ experience, you need to invest effectively if you want to see high returns not just from investing in commercial property, but from investing in any sector throughout the UK property market.