Foreign interest boosts property

INCREASED interest from sovereign wealth funds and retail investors helped push commercial property back into the black at the start of this year, the Bank of England noted.

The BoE cautioned that sector values remained “well below” their 2007 peak, however, and pointed out derivatives appeared to price in little capital gain over the next few years.
The Investment Property Databank index gained one per cent in January, bringing cumulative growth since its July low to 10 per cent. The BoE had previously flagged banks’ exposure to property as an area of concern.