UK commercial property beats equities as most profitable asset

Chris Papadopoullos
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UK COMMERCIAL property was one of the best asset classes to invest in over the past year.

Research from Lloyds Bank released today show investment returns on UK Commercial property were 20.1 per cent in the year to October – the highest among the nine key asset classes.

It was followed by global equities, which made gains of 12.8 per cent and UK residential property, which climbed 11.3 per cent after the UK’s housing boom, which has now come off the boil.

Last year, global equities won first place, gaining 28.5 per cent.

The other five main asset classes listed by Lloyds were Global equities, UK residential property, UK bonds, international bonds, UK shares, cash, commodities and precious metals.

Commodities and precious metals made losses of 4.9 and 17.8 per cent respectively.

“Investment returns on UK commercial property have been boosted as investor confidence has improved on the back of a positive economic outlook,” said Ashish Misra, head of investment policy at Lloyds Bank private banking.

Second estimates released by the Office for National Statistics yesterday confirmed that Britain’s GDP grew by three per cent in the year to September.

“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,” said Misra.