Commercial property on the up: Yousefian

The multi-asset fund manager, who earlier this year left City Financial to join Charteris, said: “We expect commercial property to post a return on capital in the region of 10-15 per cent this year.”

Mr Yousefian said property should play a part in every investor’s portfolio and that intermediaries could increase the asset class weighting in typical balanced portfolios by as much as 20 per cent.

He added: “For those seeking income and are prepared to diversify away from equities and bonds, it is the strong growth in rent values and its low correlation to equities that makes property such an attractive alternative at this time. This is leading growing numbers of portfolio managers and asset allocators to show a greater conviction to the asset class.”

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Adviser view

Dominic Basilea, director of Hertfordshire-based Aqua Wealth Management, said: “It is difficult to say, because commercial property does not seem to be increasing much in value. Rent on commercial property is coming down, so unless you get good numbers I can’t see it as viable. While diversification is key, 20 per cent is too much to put in one asset class.”