Concerns rising over property sector inflows

Concerns rising over property sector inflows

The commercial property sector hit new highs in 2014 in both capital growth and rental terms. Yet supply levels remain low and demand high. Delyth Richards, head of funds research at Kleinwort Benson, analyses whether investors should stick with the sector in 2015

The highest post-crisis returns from property were generated in 2014, as the commercial property sector continued to be supported by a healthy UK -economic background. According to the Investment Property Databank (IPD) monthly index data, the sector returned 15.9% in the year to the end of November, outperforming every other mainstream asset class. The office sector performed the best, returning 25.3% over the period (see infographic). However, as the sector charges ahead following large inflows over the past 12 months, new challenges will begin to appear. It is at this point you have t...