Distressed commercial property numbers ‘on the rise’

Posted 24/11/2009

The number of distressed sales in the UK commercial property sector is rising over the latter half of 2009, according to the Royal Institution of Chartered Surveyors (Rics).

New research published by the body revealed that just over 20 per cent of British estate agents have reported an increase in the number of distressed properties coming onto the market.

Although this represents a reduction from the number recorded in the second quarter, Rics nevertheless expects distressed property figures to continue to rise until the end of the year.

This trend reflects an overall global increase in the prevalence of distressed commercial property listings.

Oliver Gilmartin, senior economist for Rics, attributed this to “loan refinancing and improved pricing [providing] a window of opportunity for banks to manage down some of their property loan exposure”.

Earlier this month, Land Securities forecast that the UK commercial property sector is now on the path to recovery, though it warned that there are likely to be “ripples along the way”.