Economy dictates case for investing in commercial real estate

This is particularly due to the risk/reward characteristics of real estate, the diversification element it provides to portfolios, and the fact that the asset class is somewhat underpriced, relative to gilts, gold or equities at the moment.

Michael Haddock, Senior Director, EMEA Research & Consulting, CBRE, said: "Uncertainty is the prevailing theme of the current economic environment and one of the major benefits of real estate is that it offers a positive investment case, not just against the most likely economic outlook, but also against a number of other scenarios, whether the euro zone crisis continues with no clear resolution, in an inflationary environment, or in a full blown recovery.

"While other asset classes might produce better returns under specific outcomes, real estate performs under multiple scenarios, making a strong case for investors to overweight property at his time."

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