BRITAIN’S commercial property market is on track to deliver its strongest returns in 25 years, thanks to rising confidence in the UK economy, new research from M&G Real Estate shows.
In a report published yesterday, the real estate fund manager hailed 2014 as an “exceptional year”, fuelled by increased liquidity, rising investor confidence and improving rents in the property market.
M&G predicts returns of more than 20 per cent could be achieved this year before returning to more normal levels of between six and eight per cent in the medium term.
M&G Real Estate’s Richard Gwilliam said the sector was showing no sign of let-up. “The UK economy and property market are experiencing rapid growth, leaving behind a period of difficulty that discouraged risk appetite across the board,” he said.