Investment returns on UK commercial property were the highest among nine key asset classes in the year to October, according to research from Lloyds Bank.
The figures show that returns rose by 20.1 per cent, easily outperforming global equities, which climbed by 12.8 per cent, and UK residential property which made gains of 11.3 per cent.
UK bonds delivered returns of 6.7 per cent and international bonds gained 5.5 per cent. Shares returned 1 per cent and cash a modest 0.5 per cent.
At the opposite end of the scale, commodities and precious metals made losses of 4.9 per cent and 17.8 per cent respectively.
“In the year to October, UK commercial property has been the best performing asset class,” said Ashish Misra, head of investment policy at Lloyds Bank Private Banking.
“Investment returns on UK commercial property have been boosted as investor confidence has improved on the back of a positive economic outlook.
“Recovery in both the occupier and investments markets has been in full swing for much of the past two years raising demand, and with supply slow to respond, driving up rental growth and capital values.
“Whilst demand in London has driven returns for much of the period, recovery in the regions appears to be coming through more strongly now as well.”
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