Global property securities are set to outperform as austerity kicks in

ON SPECIALIST MARKETS

STUART MARTIN, co-manager of the First State Global Property Securities fund on Specialist Markets

Global property securities have performed well in 2010. The UBS Global Property Investors Index rose by 11.2% in sterling terms, compared to 0.5% of the MSCI World Index. Global listed property outperformed as investors remained positive about the long-term prospects of the asset class, which should benefit from economic recovery, low interest rates and urbanisation trends in emerging markets. During the period, markets were particularly concerned about a potential housing bubble in China, where economic growth has been very strong and property prices have been on the rise. The Chines...