Commercial Property Market Popular than Ever!
Property has always been a good and solid investment. Ask any financial advisor about balancing your portfolio and they will most likely tell you that it should include some form of property. Property, especially commercial property has a proven track record of sustained growth and regularly outperforms inflation rates.
These factors have combined to make a commercial property a very attractive investment. Property is seen as a long-term investment that offers many benefits to its owner. Investment funds routinely invest in property to mitigate their risk levels and ensure great returns for their customers. Commercial property has a reputation for attracting reliable long-term tenants which makes it a lower risk investment and increases its popularity amongst investors. In recent years we have seen a boom in the construction industry as more and more commercial developments are taking root. This trend is set to continue well into the future and is boosting investment in the sector.
There is a “sweet spot” in the commercial real estate market that has been attracting private investors with enough investable capital while keeping large institutions from investing. This is called the mid-market and includes properties priced between two and five million Euros. The price is low enough to allow private investors to invest while at the same time not being big enough to attract large investment firms. Much of the recent increases in commercial real estate investment has been taking place in this segment of the market. It seems that investing in commercial real estate is now more popular than ever.
Governments worldwide have been making it easier for investors to invest in commercial rather than residential real estate, this has been done by offering lower taxes and incentives. Many people also feel that it is easier to find high-quality tenants for commercial real estate as opposed to residential real estate. Many new start-up firms lack the required capital to build or buy their own commercial space which leads them to look into renting office space on a long-term basis. As a country the United Kingdom is an especially popular destination for investing in commercial real estate, this is in part due to active efforts from the government to market the country as the premier choice for both private and institutional investors looking to enter the real estate market.
The question on everyone’s lips is, how long will this boom last? The truth is that the question has no simple answer. The real estate market is subject to peaks and troughs just as any other market is. At the moment commercial real estate is a great investment opportunity that offers consistent and stable returns. Real estate is also a great choice for people who want to see both growth in capital investment and a good monthly income. If managed correctly commercial real estate can be a very lucrative choice offering more advantages than any other investment options. History has shown us that property is one of the safest bets when it comes to investment, this track record also plays a big part in the popularity of commercial real estate as an investment.