The end could be in sight for the fall in fortunes of London’s commercial property market, so long as the Bank of England takes the right action, a real estate fund management group has claimed.
As long as the Bank can return liquidity to the market, domestic investors have good reason to buy into commercial property.
The statement comes at a time when the market shows some signs of stabilising, thanks to foreign investors who have been drawn to London thanks to the pound’s weakness against the Euro.
Returns from commercial property are currently reasonably attractive. However, continuing doubt about liquidity and the scope for growth are holding back UK investors from buying into the sector.
Unless the Bank of England facilitates a change in this area, the burden – and later benefits – will therefore fall mainly on foreign and private investors.