The timing is right for commercial property investment

The timing is right for commercial property investment



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The European Property Fund Manager, Seven Dials, has commented that as commercial property prices reach historic lows and values continue to fall, now is the time to snap up a bargain. 

During the last 15 months the UK has seen over inflated property values reduce by more than 20 per cent. Further falls are expected at the tail end of this year, as the full extent of the market correction has not yet been reflected in formal valuations and indices.

 

“Our preferred valuation indicators suggest that the UK market is now at a tipping point and prices are extremely good value. This is certainly a good time for investors to look at entering the market,” said Mickola Wilson, director.

 

“Yield levels, even allowing for generous risk premium, are well above those of bonds and there is every expectation that interest rates will also fall significantly over the next six months. Therefore, commercial property now offers strong long term returns compared with the risk free rate represented by five year Government bonds.

 

“In addition, commercial property prices are not just more attractive than they were last year, the peak of the market, but at better value than they have been for most of the last 25 years.”

 

Wilson continued: “The ultimate art of property investment is timing and although not for the fainthearted, we believe that the current market offers outstanding investment opportunities, so if you’re going to invest then now is the time to do so.”

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