Disillusioned small investors are turning their backs on the stock market and are targeting commercial property, according to the Royal Institute of Chartered Surveyors (RICS).
While the third quarter of the year has seen a fall in business demand for commercial property, it has been matched by a rise in consumer confidence which looks as if it is stabilising.
RICS pointed to an upturn in surveyor confidence, which has returned to its highest level for two years, combined with the renewed sell-off in the stock market, which suggests investors may be looking to this market for its comparatively high yields.
Louis Armstrong, chief executive of RICS, said: ‘The commercial property sector is a mixed bag at the moment. Firms are obviously unlikely to expand during periods of economic and political uncertainty and yet, outside London and the South East, it is a case of business as usual. With the FTSE 100 down 21% since the start of the year, activity in commercial property investment has been attractive. Investors are looking for profitable alternatives to equities and the relatively high yields in the sector are attractive.’