There are a variety of property types, such as industrial warehouses and healthcare, which all offer different structural drivers of return.
One example is large-scale distribution centres. Internet shopping continues to take market share from high street retailers and we expect this segment of the market to prosper. This asset class is likely to be a continued beneficiary from changes in shopping habits regardless of the outcome of negotiations to leave the EU.
Overall, property still has a place in diversified portfolios despite the fallout from Brexit. In a world starved of income, the potential yield on offer makes it an attractive asset class. While questions remain about future capital values, investors need to ensure their investment time horizons match the risks involved in this relatively illiquid asset.
Nathan Sweeney is senior investment manager at Architas
