The UK commercial property market that had 7.7% wiped off its capital value in the wake of the credit crunch last year, will rebound in the second half of this year as investors look for alternatives to debt and equity, and sovereign wealth funds seek out bargains.

According to a new report by Legal & General Property, the real estate investment arm of Legal & General Investment Management, investors will continue to diversify away from equities and into property and that UK property will also benefit from a more diverse investor base, including overseas funds.