UK commercial property returns were dire in 2012 as returns fell by around 3 per cent. And total returns for the sector over a five-year period were a measly 0.5 per cent a year on average. It doesn't sound great, but experts from Legal & General believe now could be a good time to invest as return prospects are perking up for 2013.
Total returns will be dominated by income returns, which are currently around 6 per cent. Legal and General's research director, Rob Martin, predicts this will rise over the course of the next 12 months.
'Risk-on' assets such as equities have already seen the benefits of loose monetary policy, he explains, and he is confident commercial property could be next.