BH&S: Confidence in property is mounting
UK - Institutional confidence in property investment has soared over the past year, a survey by Baring, Houston & Saunders shows.
BH&S says 38% of its clients are optimistic about getting good investment returns out of commercial property in the next three years – compared to only 25% last year.
The survey also revealed large swings in popularity for individual property sectors.
Where office investments were the preferred sector of 26% last year, this has dropped to 7% this year.
BH&S senior director of research and forecasting Ian Whittock said: “The legacy of overcapacity from the 1990s will hit the City next year.
“City vacancy rates are continuing to increase rapidly and are set to peak at 15% by the end of next year leading to a 10-15% fall in rents.”
Retail and industrial properties have both benefited as a result.
Where 29% of investors named industrial property as their preferred property asset last year, the figure rose to 40% this year, likewise those stating a preference in retail property jumped from 16% last year to 26% this year.
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