Rics hails ‘positive signs’ in UK commercial property market

Posted 20/08/2009

Signs that the commercial property market in the UK is beginning to stabilise have been welcomed by experts.

According to the Royal Institution of Chartered Surveyors (Rics), the value of commercial property in Britain has dropped by almost half since the economic downturn began.

However, senior economist Oliver Gilmartin believes there are “definitely some positive signs” that the market is bottoming out.

“Yields have started to stabilise and have even fallen back on some prime property assets in recent months,” he commented.

Mr Gilmartin said concerns regarding the current rental downturn have also moderated in recent weeks.

He added that the extent and duration of the slump in the market will depend on factors such as redundancy levels and the state of the wider labour market next year.

The comments come after Rics reported an increase in the number of distressed properties being sold on the commercial property market in more than three-quarters of the countries it surveyed.