The commercial property market has been showing positive signs of recovery for several months but the rise in the value of sterling is potentially unhelpful to the market, since it poses a threat to future growth.
There has been a significant level of growth in the London and South East property markets recently and there are signs that this capital is filtering through to other areas of the country.
Much of this investment has come from overseas and, according to Alex Ross, the manager of the Premier Pan-European Property Fund, overseas investors are beginning to realise that they will find better value from investing in regional property.
The only cloud on the horizon in 2014 appears to be the rise in the value of sterling but even this is not as big a threat as some may believe says Mr Ross.
As the UK economy began its recovery, sterling increased in value over 7 per cent compared to the U.S. dollar.
Investors buying UK properties would most likely be paying in this currency, which would make UK property assets more expensive compared to those in other markets.
Mr. Ross considers this is as a factor for investors to consider but does not believe that it is a significant threat and he points out that the value of sterling is still below the level it was four or five years ago.
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