Commercial property demand ‘set to increase’

Posted 08/02/2010

Commercial property investors can expect to see demand for their portfolios increase in the coming months, according to an expert.

David Wylie, head of economics and forecasting at real estate advisor CB Richard Ellis (CBRE), has expressed confidence that the market is set to improve, despite slowing growth rates in January.

Figures from the CBRE monthly index have revealed that capital values in the sector rose by 0.9 per cent, a substantial decrease from the record 3.3 per cent rate seen in December 2009.

However, Mr Wylie stated that this represents an “unsurprising moderation” given the traditionally slower activity seen in January.

He added: “Given the breadth and depth of investor demand currently seen in the market, total returns look set to re-accelerate in the coming months.”

This confidence mirrors that of the Royal Institution of Chartered Surveyors, which earlier this month predicted that investors are increasingly returning to the sector due to the potential for strong medium-term returns.