Why Invest In Property?
The last decade has seen investors make significant returns from investing in property. Whilst the market crash of 2007-2009 was a reminder that property investment was not without risk, it remains a core investment due to its long term secure cash-flow, relatively high income (compared to bonds and gilts) and lower volatility (than equities).
Commercial property’s overall lack of correlation to fixed income and equities make it an important asset class to include, by way of diversifying risk, in an investment portfolio.
With bond yields at unprecedentedly low levels, institutional investors have been looking beyond government bond markets for sources of income to meet their liabilities, leading to a widespread increase in such investors looking to increase their allocation to commercial property.
The significant returns on offer, and the ability to increase these returns through various asset management strategies, make property investment attractive.