Investing in property: why it is still a good diversifier for the long-term

The fundamental case for property as an asset class remains intact. While the sector has been overshadowed by relatively strong returns from equities and bonds, there is still a strong case for investing in property for the long-term, ii’s head of fund research, Dzmitry Lipski, argues

Luxury residential building in London Wapping
(Image credit: shomos uddin)

Investing in property may have been overlooked as an asset class in the last two years, but there is still a strong case for it to be part of your portfolio as a long-term diversifier. 

Equity markets have performed well over the past two years, and coupled with attractive bond yields on offer, investor attention has shifted away from alternative assets and property, in particular. However, with interest rate cuts on the horizon, it is expected long-term investors will shift their gaze towards the property sector once more. While property performance has not been strong over the past five years through the pandemic, yields and valuations now look attractive relative to other asset classes.

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Dzmitry Lipski
Guest contributor

Dzmitry Lipski heads up the fund research team at flat-fee investment platform, interactive investor (ii). He joined ii in 2017 after two years at TD Direct Investing, four years as a portfolio analyst at Standard Life, and before that Bank Leumi. A graduate in financial economics from the University of Liverpool, Dzmitry has more than 15 years' investment experience, is a Member of the Chartered Institute for Securities and Investment and holds the Investment Management Certificate.