According to the Financial Times, wealthy investors are migrating away from the residential property market and they’re turning to commercial property as a preferred investment target. The FT explain that the reason for this is a perceived lack of growth in the value of the most expensive residential properties.
Is it a blip or a sign of things to continue? Given the consistent upward growth trend in residential property prices over the last decade, it remains to be seen whether this is a trend that we might reasonably expect to continue. Meanwhile, it seems that wealthy investors have spotted an opportunity for increased returns by switching their attentions to commercial property.
Wealthy investors in search of income-generating investments are looking to move from residential to commercial property in the face of the UK’s stuttering super-prime real estate market, say property experts. Property advisers — including lawyers, fund managers and estate agents — reported rising demand from wealthy clients for commercial property.