Direct investment in commercial property can yield better returns than investing through real estate investment trusts (Reits), it has been claimed.
According to the British Council of Offices (BCO), Reits may not be giving commercial property investors the best returns for their money.
Figures from Investment Property Databank show that commercial property returns fell by 1.5 per cent in June compared to a decline of 0.7 per cent in May.
But BCO chairman Mr Oakley said he suspects the average fall in Reits share prices already exceeds the fall in capital values on commercial property.
"Had you spent £100,000 on commercial property in January 2007 and had you spent £100,000 on a listed property company, you would be feeling a lot happier with your direct property investment rather than your Reit," he remarked.
The Reita quarterly property investment perspective, published in May, predicts that UK property stocks will fall by a further 15 to 25 per cent this year.
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