Wealthy investors call bottom of property market: Barclays Wealth

High net worth individuals (HNWIs) have renewed confidence in residential and commercial real estate, according to the latest Barclays Wealth Insight report.

The report entitled 'Prospects for Property: On Solid Foundations?' is based on a survey of more than 2,000 high net worth individuals across different global markets.

Barclays Wealth said the report demonstrates investors' loyalty to property as an asset class. In spite of the turmoil which has hit the sector, twice as many respondents (35%) said they planned to increase their property allocation over the next two years, compared to 17% planning to decrease it over the same period.

The report suggests that this confidence is global, with investors in nine out of the ten largest markets surveyed planning to increase their allocation to property over the next two years. However, with the risk of a potentially slow recovery, Barclays Wealth urges investors to take a cautious approach to avoid overexposing themselves to property.

Rory Gilbert, managing director and head of UK High Net Worth, UK & Ireland Private Bank at Barclays Wealth commented: 'The tumble in property values has shaken even the most seasoned investors' confidence. Despite this, these findings suggest that investors believe we are approaching the beginning of the end of the downturn. It appears that those surveyed are prepared to not only exploit undervalued opportunities, but also to commit further to property over the next two years in the belief that they will benefit from favourable returns.

'However, whilst there seems to be a good deal of confidence emerging, investors should ensure that they don't over commit themselves, or concentrate their property portfolios too narrowly, whilst there is still a degree of volatility in the markets. Wider market data suggests that initial indications of recovery in property could be a false dawn, or the start of a slow upturn. The next 12 months will be crucial in getting a clearer idea of what the longer term property investment landscape will look like.'