March 01, 2011
After years of financial strain and unpredictable domestic and foreign markets, UK commercial property could be set for a bumper period of activity, the Royal Institute of Chartered Surveyors (RICS) has revealed.
The latest RICS Commercial Property Market Survey shows further modest improvement in the real estate market, with 18% more surveyors expecting new sales and lettings to increase in the next three months, the best reading since before the onset of the 2007 credit crunch.
In the last three months of 2010, overall tenant demand for commercial property stabilised, rising sharply from worrying figures seen in Q3. But while the landscape is improving, an uncertain economy under the new government will continue to pull on the market, experts have claimed.
“While it is true that some optimism is returning to the real estate world, the commercial market still faces significant challenges,” said Simon Rubinsohn, RICS Chief Economist.
“Prime London offices are, and will continue to be, the most buoyant part of the market. Meanwhile, secondary offices around the country are a particular area of concern as oversupply will be compounded by likely consolidation in the public sector. On top of this, the general lack of new projects being initiated outside of the capital has important ramifications for regeneration in large parts of the country.”
While the upturn in market fortunes is welcome, those hoping to get a footing in the commercial market, or offload existing property portfolios, have been advised to seek expert advice before making any major decisions.
