Investor opinion on whether this is the best time to invest in commercial property is deeply divided, according to the latest
F&C Investments' series of monthly online polls.
When asked if now is a good time to invest in commercial property, 52.5 per cent of respondents saying “yes” and the remaining 47.5 per cent saying “no”.
F&C's Question of the Month surveys users of F&C's investment trust website,
www.fandc.co.uk. Respondents are also invited to leave comments, which (though small in number) underlined the divided nature of those taking part.
While several of those commenting said they expected the commercial property market to stagnate over the coming year, some took the view that property was on the up, and others said they had already invested and intended to remain so. One commented hopefully: "I'm praying it's also time to invest in residential as well".
Recent figures produced by F&C REIT Asset Management, which manages F&C's range of commercial property investment trusts, suggest that there is further capital growth potential in commercial property, with valuations still a long way off their peaks, despite recovering strongly in the latter part of 2009.
However, many investors are attracted to property because of its potential for income generation.
"It’s perhaps unsurprising that opinion is so split on this issue,” said Mike Woodward, head of investment trusts at F&C Investments. “Commercial property values got ahead of themselves in the few years before 2007, but the sector has been hit harder than many since the onset of the credit crunch.
“The recent recovery in commercial property has been greeted by some as a return to normality, but others understandably fear that the easy money has been made.
“Our property fund managers are cautiously optimistic on the outlook for 2010, but there remains the possibility of a further downward leg. They continue to stress that commercial property investment is likely to be most suitable for investors seeking an income."
F&C offers three commercial property investment trusts - F&C Commercial Property Trust, managed by Richard Kirby, and ISIS Property Trust and IRP Property Investments, both managed by Ian McBryde. Together they account for over £1 billion of assets under management.
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