Commercial Property: 10% Annual Return "Probable"

Rising interest rates are often cited as a major concern but history has shown that direct real estate is not particularly sensitive to movements in either short or long term rates

Andy Brunner 8 October, 2015 | 10:56AM

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UK commercial property remains supported by strong underlying industry fundamentals but with valuations in certain prime sectors becoming of increasing concern. Even so, close to double-digit IPD index returns appear probable over the next twelve months. Unfortunately, most directly invested property funds will deliver less and fund flows need to be watched closely as the pricing basis can change alongside investor sentiment.

Whenever equities stumble, UK commercial property tends to perform well

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About Author

Andy Brunner

Andy Brunner  is Head of Investment Strategy, Morningstar UK

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