Commercial property demand ‘on the increase’

Posted 20/10/2009

Demand for UK commercial property is beginning to return among UK companies, according to a real estate advisor.

Cushman & Wakefield has stated that increasing optimism in the market is leading to “unprecedented” demand for property purchases which is far outstripping supply.

Moreover, it also stated that rents are stabilising in both the office and retail property sectors.

These findings are reinforced by recent Investment Property Databank figures which showed that capital growth in the commercial property sector increased by 1.1 per cent in September, the largest increase in more than three years.

In addition, Savills stated earlier this month that financial institutions are becoming increasingly willing to provide loans for property sale deals.

Clive Bull, head of central London investment at Cushman & Wakefield, described the findings as “good news” but nevertheless continued to urge caution, warning that the sector is still facing a “difficult time”.