Wealthy investors' show of faith in property
Thursday, December 03, 2009
Global investors remain loyal to property as an asset class according to a recent report from Barclays Wealth. Barclays Wealth and the Economist Intelligence Unit released the global report, which for the first time since the start of the recession reveals wealthy investors' attitudes towards residential and commercial property investment. The report reveals renewed confidence in residential and commercial property as twice as many investors (35%) set to increase property allocation than decrease (17%) over next two years, according to the report.
In addition, investors perceive property as an undervalued asset class and believe property will have better returns than other asset classes. The report shows that this confidence is global, with investors in nine out of the 10 largest markets surveyed planning to increase their allocation to property over the next two years. When asked about their general outlook towards residential property, 76% said they believe that there are opportunities. Investors are also optimistic about commercial property, with 68% feeling that there are opportunities available. Interestingly, respondents seemed to expect high rental returns from investing in residential property. The report sheds light on investors' motivations for choosing to increase their investment in property. The most common reason is the belief that property has better long-term prospects than other asset classes (25%).
In addition, investors perceive property as an undervalued asset class and believe property will have better returns than other asset classes. The report shows that this confidence is global, with investors in nine out of the 10 largest markets surveyed planning to increase their allocation to property over the next two years. When asked about their general outlook towards residential property, 76% said they believe that there are opportunities. Investors are also optimistic about commercial property, with 68% feeling that there are opportunities available. Interestingly, respondents seemed to expect high rental returns from investing in residential property. The report sheds light on investors' motivations for choosing to increase their investment in property. The most common reason is the belief that property has better long-term prospects than other asset classes (25%).