The research shows that:
• 40% of IFAs expect the UK commercial property market to begin recovering this year, compared to 42% who believe the recovery will not start until 2009 or later
• Although 10% of advisers feel the recovery is already happening, a further 10% don’t see it happening until 2010
The results came from the latest wave of independent research, commissioned for Reita (www.reita.org), the educational and awareness campaign for REITs and quoted property investment. 241 UK based financial advisers took part in the study, which was conducted by NMG Research throughout May 2008.
Dave Butler, head of external affairs at Reita, explained: “The views of advisers on the timing of recovery for the commercial property market are very interesting, particularly in their diversity not just from each other but also from the views of other industry commentators. Less than a couple of weeks ago, 58% of Reita’s own ‘Expert Panel’, agreed that investment conditions in the UK commercial property market would not start to recover until 2009 and only 27% saw recovery beginning this year.
“Clearly advisers are far more positive than the ‘experts’ about the outlook for property this year and perhaps overlooking the potential double-dip effect that the experts fear. Whilst falls to date have been in investment values, we are now seeing concerns about weakening on the tenant side which would impact rental income streams - particularly those portfolios which are not focussed on prime grade property.”
