Commercial property is benefiting from the volatile stock market, according to a poll of agents.
A National Association of Estate Agents (NAEA) poll shows that agents are highly optimistic about the commercial property market, with increasing evidence to suggest that investors are willing to buy property despite comparatively low yields.
Agents feel that the unpredictable nature of the stock market in recent months is having a direct and positive impact on the commercial property market.
Jeff Powell, chairman of the NAEA’s commercial committee, said: “It seems that commercial property may be more attractive at the moment than stocks and shares for investors.
“Our poll suggests a market in which investors are prepared to pay more for commercial properties even though rental returns are not rising at the same rate as capital values.
“The fact that the capital value of commercial property continues to rise is sufficient to keep this a very buoyant market.”
The NAEA’s poll suggests that the strongest interest in commercial property is coming principally from private companies and partnerships, followed by private individuals and sole traders.
Half of the commercial property agents polled were from London and the South East, while half were from the rest of the country.
A third expected to see increases in performance compared with 2001, over half expected it to remain the same, while “only a handful” predicted a decline.
EGi News 18/03/02
