Building resumes on property products

Less volatile than equities and on offer in a variety of forms and available in either growth or income style, commercial property has made a low-key return to the investment world. As property values recover, access comes in the form of exchange-traded funds or structured products for those investors willing to swap a bit of safety for a little more yield. Rebecca Hampson reports

Commerical property on the rise

A new-found interest in commercial property is in evidence as investors seek new ways of securing a decent yield and an alternative investment allocation, as well as a stake in a sector that exhibits low volatility. “The macro environment of quantitative easing and low interest rates has resulted in a substantial recovery in asset prices,” says Nizam Hamid, head of iShares sales strategy in London.

“At the same time, the physical property market can lack liquidity due to the nature of the asset