Investment in property looks set to increase among Britain’s wealthy during 2012, according to new research by investment specialist Skandia

Proven millionaires were asked which investments they are most likely to increase their exposure to over the next six months, and property was the number one choice (55%). Residential property was slightly more popular at 31%, with commercial property at 24%. Currently almost a third (30%) of investment by this group is in residential property, with just 4% invested in commercial property.

Cash (42%), shares (40%) and managed investment funds (28%) – some of which may be property focused – were the next most popular options for near future investment.

The survey was carried out in January with 436 UK based millionaires (investable assets over £1 million excluding their main property of residence) as part of Skandia’s second Millionaire Monitor report, which tracks attitudes and investment sentiment among Britain’s wealthy.

Interestingly, the majority of property currently owned by this group is in the UK, with just 17% of those surveyed owning one or more properties abroad.

According to Graham Bentley, Skandia UK’s head of investment strategy their survey shows that “ Britain’s love-affair with property continues, with subdued prices in the UK and abroad attracting those with money to invest.”

Bentley added: “Investment through property funds as well as directly into bricks and mortar is an attractive option, particularly for wealthy investors who would rather avoid the hassle of managing property directly.”

The Skandia Millionaire Monitor+ report is available to view and download free at: www.skandia.co.uk/millionaire-monitor-plus