Commercial property market ‘is over the worst’

Posted 30/07/2009

Conditions in the UK’s commercial property market have been tipped to improve over the next year, a new report has stated.

According to figures from BDO Stoy Hayward, the total number of property returns in Britain is almost back to zero following 18 months of continuous decline.

The organisation believes this is a sign that the worst phase of the recession may have passed and that the market could pick up in the near future.

“It is particularly significant,” said Solly Benaim, head of real estate and construction at BDO Stoy Hayward.

“As we head towards the autumn and 2010, we anticipate sentiment within the sector to continue to improve.”

However, the organisation said that while the commercial property market may have improved slightly in recent weeks, conditions are still very “challenging”.

Indeed, the British Retail Consortium recently reported that 12 per cent of town centre shops across the UK are now vacant – three times more than the amount recorded last autumn.