Enable's experienced IFA’s in Bishop’s Stortford know that most wealth management packages involve an element of commercial property and according to a report from investment firm Fidelity International, investing in commercial real estate in Europe is set to continue to produce positive yields in 2017.
It says that the European Central Bank’s quantitative easing programme has continued to encourage a transfer of capital from the periphery to the core Eurozone, and this capital is chasing high quality real assets in core Europe, especially Germany. Overall, European real estate markets have delivered strong returns in recent years and, although the cycle is maturing, it is far from over. Neil Cable, Fidelity International’s head of European real estate explained that in the strongest markets of Europe, especially Germany, values have been steadily increasing for the past couple of years, and this is likely to continue well into 2017.
‘Real estate fundamentals are expected to remain positive, and while QE is in place, we believe the weight of capital will extend the European, excluding the UK, investment cycle. We expect capital growth from yield compression in core Eurozone to continue, albeit at a slower pace, with prime yields likely to fall to a new accepted threshold of around 3%,’ said Cable. ‘As we approach 2017, investors should retrain their focus on the underlying income in their property investments, understand the quality of the tenant companies paying the rents, and ensure good diversity of lease length and tenant type.,’ he said.
If direct property investment is not for you making sure some commercial property is part of your broader portfolio is what Enables’ IFAs in Bishops Stortford can help you think through.
http://www.propertywire.com/news/europe/commercial-property-investment-europe-set-continue-positive-yields-2017/
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