Property Funds Back in Favour
Published / Last Updated on 03/06/2013
Property Funds Back in Favour.
Signs that investors in the property market are starting to return. Figures released have shown that the total sales of property funds hit the highest point since 2011.
It seems that as income levels in the property sector start to rise again hungry investors are being attracted back. During the crisis property values fell by up to 40% leaving some property funds still closed to this day.
Our View
The move back to commercial property funds is driven by rental yields. Capital values by up to 40% have fallen but rents will have remained comparatively stable and with capital values low, this will mean very attractive yields. The economy starting to recover will increase demand for commercial space meaning property may now be an attractive investment as rents combined with capital growth provide a significant investment alternative to areas that already priced high such as gold, bonds and equities.