Commercial property market ‘has reached turning point’

Posted 22/10/2009

The UK commercial property market may be on its way back to recovery, according to new research.

Figures published by Jones Lang LaSalle have revealed that total commercial property returns rose by 4.5 per cent in the third quarter of the year, the first positive result since mid-2007.

This comes after the Investment Property Databank earlier this month reported that capital growth in the sector increased by 1.1 per cent in September.

According to the British Property Federation (BPF), such figures could be a sign that the market has now reached a turning point, with demand in the prime market beginning to return.

However, Ian Fletcher, director of policy (real estate) at the BPF, reminded those in the industry that a full recovery remains a long-term goal.

He said: “There is a long, hard slog still to come in terms of getting the industry back to the level of activity we saw two or three years ago.”