Net flows into the UK’s unlisted property fund sector turned positive in the second quarter of 2008, hinting that investors are spying value in the beaten-up commercial property sector.

Some £596m (€760m, $1,142m) of new money flowed into the sector in the second quarter, while redemptions fell to £557m, from £818m in the previous three months, according to data from the Association of Real Estate Funds, turning net flows positive for the first time in a year.