Commercial property is king for income seekers

PROPERTY

Ignis Real Estate's Gary Hutcheson on why UK commercial property is currently the most attractive choice for income- seeking investors

For the income seeking investor, commercial property is an attractive choice. The FTSE 100 is currently yielding 3.3% and while corporate bonds offer a more attractive yield there are concerns over current capital values. In contrast UK commercial property is yielding in excess of 6.5% and Ignis believes capital values in quality stock are likely to remain stable.   The rebound Since the property market’s falls in the two years to mid 2009, capital values have rebounded strongly. In the second half of 2009, investors were looking to take advantage of prices that looked parti...