An even stronger performance of the UK commercial property market is expected in 2005 according to F&C Property Asset Management.
Despite the strong performance of this sector last year, there is further growth predicted with a 2 per cent increase in 2005, from 7 per cent to 9 per cent, and 9 per cent per annum forecast over the next five years.
This claim followed the findings of ISIS Property Trust Limited preliminary results and ISIS Property Trust 2 interim results, both stock exchange listed companies with F&C managed portfolios.
F&C predicts that retail property, the best performing sector in each of the last three years, will continue growing in 2005.
F&C Property Asset Management director of property funds Michael Barrie says: “The 2004 commercial property out-turn was the highest we have seen for ten years and reflected continued strong investor demand. Whilst we don’t believe the heady returns of 2004 will be repeated in coming years, we do believe they will continue to be attractive.”