The majority of investors believe that now is a good time to invest in commercial property, an F&C survey suggests.

F&C’s Question of the Month, which surveys users of its investment trust website, found that 52.5 per cent of investors are confident that commercial property is a good investment.

While several of those commenting said they expected the commercial property market to stagnate over the coming year, some took the view that property was on the up, and others said they had already invested and intended to remain so.

Recent figures produced by F&C REIT Asset Management, which manages F&C's range of commercial property investment trusts, suggest that there is further capital growth potential in commercial property, with valuations still a long way off their peaks despite recovering strongly in the latter part of 2009.

However, many investors are attracted to property because of its potential for income generation.

Mike Woodward, head of investment trusts at F&C Investments, said, ‘It is perhaps unsurprising that opinion is so split on this issue. Commercial property values got ahead of themselves in the few years before 2007 but the sector has been hit harder than many since the onset of the credit crunch. The recent recovery in commercial property has been greeted by some as a return to normality, but others understandably fear that the easy money has been made.

‘Our property fund managers are cautiously optimistic on the outlook for 2010, but there remains the possibility of a further downward leg. They continue to stress that commercial property investment is likely to be most suitable for investors seeking an income.’