Divided outlook
Last week’s upbeat comments from Scottish Widows Investment Partnership regarding the prospects for commercial property have been challenged by Jason Butler from Bloomsbury Financial Planning.
Butler says in an interview with FT Adviser that SWIP’s prediction of total returns of 8.5% per year until 2015 is “overly optimistic”, and does not take the consequences of the recent Budget into account. He added: “With such a volatile backdrop I do not know how the commercial property market is going to thrive. I think investors should keep their exposure to property the same as it was three years ago and not increase it.”
At Citywire James Smith is highlighting the split in opinion among property professionals as to the outlook for the commercial property market in general, with those who like the yields to be had from property investment pitted against those who are worried about the sector’s debt burden.
If you are feeling charitable while you ponder property’s prospects, why not take a look at the latest event from JLL in its charitable efforts to celebrate its 250th year. Pianist (and principal property auctioneer) Felix Rigg has recorded a CD of classical music (which can also be downloaded as an MP3) to raise funds for the male cancer charity Orchid.
