As a UK investor, you're probably familiar with the notion of investing in property through home ownership or buy-to-let. However there is another way to access this market – through funds that invest directly in commercial property, such as retail premises and offices, or by investing in the shares of property companies. Alternatively, real estate investment trusts (REITs) have become another popular option for investors all over the world.
Why invest in property?
Many people find there’s something reassuring about investing in property – maybe because bricks and mortar represent a tangible, physical asset that’s easily understood. While the property market can experience slumps just like the stock market, research shows that returns from commercial property are not closely correlated to those of equities and bonds over the medium-to-long term. Consequently including property in your investment portfolio can be a great way to diversify your assets. Investing in commercial property provides the potential for long-term capital growth as property values can appreciate over time, although these values can also fall. Over the long term, commercial property can offer a stable income stream through rental income from the tenants that occupy the buildings. Please note selling property can be a lengthy process so investors should be aware that they may not be able to sell their investment when they want to.
How can you make the best returns?
Like any investment, the more you understand a market, the better. While some individual investors may have the skills to construct their own property portfolio most simply don’t have the time, in-depth knowledge or resources to do so. For these investors, a professional property fund manager can add real value in improving their chances of positive returns.
Aberdeen Standard Investments is one of the largest property fund managers in Europe. We have a wealth of expertise – in property research, development, marketing, rent collection, credit assessment and accounting. We manage c. 1,600 properties, with £42.5bn real estate assets under management globally.*
Find out how you can benefit from our range of property funds. Please select 'Real Estate' from the asset class in the fund filter.
*Source Aberdeen Standard Investments, 30 June 2019