Property returns to record high
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.