Where is the best value in property currently?

PROPERTY

Residential, industrial or retail? Fiona Rowley, manager of the M&G property portfolio, outlines where the best capital growth and income is in the property market.

The outlook for commercial property has steadily become more positive through 2013. The main reason is the improvement in the UK economy, which is a key driver of the commercial property market. Headline gross domestic product is growing again, rising by 0.7% in the second quarter of 2013, while a fall in unemployment and higher house prices have contributed to the feeling the UK economy is on the mend, which bodes well for tenant demand. Given there has been little speculative development since the financial crisis, this is likely to put upward pressure on rents and, in turn, capital va...