Lending for commercial property deals ‘on the rise’

Posted 07/10/2009

Companies looking to finance commercial property deals are finding it easier to secure lending, according to new research.

Statistics published by real estate service provider Savills has revealed that 23 financial institutions are now willing to lend sums of more than £20 million to finance property sale and purchase deals.

This is in comparison to only 12 who were willing to provide more than £25 million in the first half of 2009.

The increased availability of funding has been welcomed by research consultancy Capital Economics, who stated that the news is a “good thing” for those operating in the sector.

However, Kelvin Davidson, property economist at the firm, advised against getting “too excited” and expecting an immediate and dramatic recovery.

He said: “It all adds to the story that the market has reached a floor and may experience some kind of recovery over the next 12 to 15 months.”