Commercial property sector ‘experiencing slow recovery’

Posted 02/02/2010

The UK’s commercial property sector is showing signs of stability and slow recovery despite continued economic uncertainty.

This is the conclusion of a new survey of European property experts by the Urban Land Institute and PricewaterhouseCoopers (PwC), which suggested that the prevailing mood is one of “cautious optimism”.

It also highlighted commercial property developments such as city centre offices, high-end retail outlets and shopping centres as the most promising investment options over the coming year.

John Forbes, real estate leader in Europe, Middle East and Africa for PwC, said that the nervousness of investors remains a key issue, but nevertheless highlighted improvements compared to 2009.

He said: “Sentiment regarding investment prospects has stabilised and although sentiment regarding development continues to decline, it is a less dramatic fall than that witnessed last year.”

The Ernst & Young ITEM Club expressed a more pessimistic view earlier this week, suggesting that positive signs from the commercial property sector are likely to be curtailed by the end of incentive schemes from the government and banks.