Commercial property raises record amounts for investors

The final quarter of 2009 saw institutional investors and pension funds raise a record amount of money from the UK’s commercial property sector.

According to new data from the Association of Real Estate Funds (Aref), the final three months of 2009 saw institutional property funds collect over £3.2 billion, the largest amount since records began.

The figure was substantially greater than the previous high - £1.7 billion during 2006 - and highlights the increasing popularity of commercial property as an investment opportunity, something that may interest those looking to generate returns from their private wealth.

Chief executive of Aref John Cartwright said that while 2009 was a ’volatile year’, it ended positively.

The final quarter brought ’extraordinary growth in returns’ he remarked.

Figures from the body also showed £2.9 billion of positive net fund flows was recorded over the three-month period, substantially higher than the £400 million achieved during the third quarter.

And there has been further positive news for the real estate sector today (February 9th), with the Royal Institution of Chartered Surveyors reporting another rise in house prices.ADNFCR-2318-ID-19605088-ADNFCR