Investment in Property Funds back to pre-recession levels

If any investment surveyor wondered why they were getting so many investment enquiries and requirements then the article I read in Saturdays Telegraph explained a great deal.  The article said:-

“Property funds are back in fashion, with £491m poured in by British savers in the single month of May, statistics from the fund managers’ trade body, the Investment Management Association, show.  Not since December 2009 has so much money been allocated to property in a single month.”

My colleagues have written a few things about the ‘Development Cycle’ recently but we could as easily talk about the ‘Investment Cycle’ as so many Fund Managers put a green ‘buy’ sign against property shares at the beginning of 2014 as they predicted total returns in excess of 10% for commercial property this year.

The article also goes on to quote the IPD Index:-

“The latest data from the widely followed IPD UK Commercial Property Index shows commercial property has generated a 9pc total return – rental income plus capital gains – so far this year (2014).  The average commercial property fund is up by 5pc.”

We are seeing significantly more transactions happening and a willingness by more property owners to ‘trade’ as well.  A lot of the deals are transacted ‘off market’ too which can give greater certainty for both vendors and purchasers.

If you are looking to sell or acquire investment property at the moment then contact one of the investment team at Harris Lamb.