Property Excellent Legal and General

Property ‘Excellent’ Legal and General

Rob Martin head of research for Legal and General has claimed that commercial property fundamentals remain strong despite market downturn in 2007.  He also said “The case for investing in property remains a strong one, it has always been an excellent asset to include in a portfolio due to its low correlation with equities and bonds and its income generating capacity”.  

Mr Martin also commented that “current demand for commercial property was patchy and admitted 2008 will be a challenging year for the sector”.

Our view

Many commercial property funds have already had unit prices adjusted to reflect a downturn in sentiment in 2007.  This means that many people encashed their property funds early, technically with a penalty.  Therefore, those who have remained invested or those who plan to invest will do so with very positive potential for growth as most of the underlying good quality property stock has not been sold.

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