Outlook for UK Commercial Property Brightens

Scottish Windows Investment Partnership (SWIP), which has suffered from low returns to the end of May, has just announced that its outlook for UK commercial property is bright.

As such, head of property research at SWIP, Mr. Trevillion claimed that long-term prospective of the sector are positive. He claimed that the first 6 months of 2010 showed that UK commercial property rents become less negative, while capital value growth tends to be stronger.

He also added that property in Britain remains the most attractive asset as compared to others.

In the opinion of Mr. Trevillion, commercial property is not the kind of investment that brings short-term returns and is only suitable for those interested in long term game.

According to the forecast of SWIP, retail property will bring returns of 8%, industrial sector - 8.6%, and office sector - 9.4% over the next 5 years.

Properties in London and the West End are expected to see more positive growth when it comes to office sector, and there will be no difference when it comes to retail and industrial sector.