New rules allowing people to invest in commercial property through ISAs could fuel a strong increase in demand among retail investors for commercial property funds, claims Scottish Widows Investment Partnership (SWIP).
A survey of IFAs, carried out by SWIP, reveal advisers are increasingly advising commercial property as an investment for their clients, with 43% of IFAs claiming an increase in the number of times they have recommended commercial property funds to clients over the past year.
Following the rules introduced on 27 December, to allow commercial property to be invested through ISAs, of the 60 advisers surveyed, 35% expect to see an increase in the number of recommendations over the next year. Meanwhile 63% have a positive outlook on the prospects of commercial property compared to just 3% with a negative view.
But more than 50% of those questioned admitted they had not increased the number of times they had recommended commercial property funds or investments to clients over the past year, and the same amount did not expect that to change during 2006.
Tom Laidlaw, head of property at SWIP, says: the commercial property sector has been a good performer over the long term, offering investors steady returns.
He adds: “This asset class is playing an increasingly important role in balanced, multi-asset portfolios. As our research reveals, most IFAs have a positive outlook for commercial property investment with retail investors looking to take advantage of new opportunities to invest in the asset class.”
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