The fund and commercial property analyst has indicated that the strength of the European labour market, in conjunction with attractive property pricing, could lead to a boost in the ‘euro zone’ commercial property market.
Brett Robinson, chief executive at Seven Dials, said: “While euro zone economies have lagged the UK’s domestic growth, all the signs are that Europe has far more upside growth potential than the UK.”
However, Robinson admitted that investors would have to diversify their offerings with the Netherlands, Ireland and Spain all areas targeted for commercial growth in 2007. He added: “UK investors have been broadly pleased, as the sector was the best UK investment performer over the past few years. But with lower forecasts for UK returns for 2007 and beyond, we would suggest a wider commercial property investment horizon this year.”
Kim Barrett, proprietor at KS Barrett & Associates, admitted that investors could look to diversify into new market to secure new income streams. He said: “The UK has been very active, so it is probably true that the overseas market is now ripe. Opportunistic nvestors could consider new markets.”
