View more on these topics

Europe and Asia lead way in commercial property boom

Inflows into commercial property rose by 333 per cent in 2006, reaching a record high of £338bn as investors piled into the asset class.

Europe and Asia were the biggest areas of growth in commercial property investments, with volumes rising by 50 and 48 per cent respectively.

The results see Europe take over from the US as the dominant property market, accounting for 46 per cent of global activity while the US dropped to 39 per cent from 46 per cent in 2005.

The report, which was carried out by global real-estate consultant Cushman and Wakefield, also highlights Europe as the strongest area for cross-border investment, with almost half of the deals in Europe conducted by dealers in other countries.

Cross-border investment now totals 29 per cent of the total investment market, up from 25 per cent in 2005, with the group expecting further rises in 2007 as diversification of property investments continues to grow.

Europe also accounted for six of the top 10 global investment markets, with Poland and Russia driving Central and Eastern European returns up from 1.1 per cent of total market activity in 2001 to 5.5 per cent in 2006.

Turkey and Romania were also strong while Germany was the most popular market, with volumes trebling in the past 12 months.

BestInvest head of communications Justin Modray says: “It is no surprise that commercial property was this strong once again in 2006 as capital growth has skyrocketed while rental income has remained strong.

“Next year’s results will be more interesting as capital growth slows and yields drop, meaning the big challenge for property managers will be getting a higher rental income stream.”

Recommended

NU backs India to boost service standards

Norwich Union has revealed plans to expand its call centres in India despite its recent decision to move more jobs back to the UK.Aviva-owned NU rejects accusations it has performed a U-turn and says it is committed to its Indian operations. It says offshoring has played a key role in improvements to service levels which […]

Threesixty to host post A-Day pension seminars

threesixty is staging a series of seminars over the next month on pensions in the post-A Day world.In the next series of their key issues seminars, speakers will look at how pension simplification and recent events have raised a number of fundamental advice issues that IFAs need to understand. The seminars will cover post-A Day […]

FSA partly to blame for TCF failures

I have some reservations over the FSA’s treating customers fairly initiative – not the concept, just the initiative – but I had to do a double-take on the article headlined, FSA warns of enforcement action on TCF. It appears that after nearly two decades of regulation, the regulator seems not to have managed to get […]

Foster Denovo could be set for MBO split from Tenet

Foster Denovo is set to break away from the Tenet Group in a management buyout just 14 months after its launch, Money Marketing understands.It is thought that the two businesses are to split due to strategic differences and will announce their parting of ways in the coming week.Top-producing Foster Denovo advisers Paul Clarke, David Pugh, […]

9 October thumbnail

Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment