UK Commercial Property Market Stabilises

A recent market analysis carried out by the Royal Institution of Chartered Surveyors (RICS) revealed that demand for UK commercial property stabilised in the last quarter of 2010.

As such, analysis showed that tenant demand for property had a net balance of zero. This is an increase from -6 registered in the third quarter of 2010.

Another improvement was the increase in supply of property to the market, which was reported by 4% of surveyors.

Commenting on the findings, Mr. Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors, said that "While it is true that some optimism is returning to the real estate world, the commercial market still faces significant challenges."

Earlier this month Knight Frank reported a significant rise in commercial property prices in London as office and retail buildings face great demand from buyers and tenants. The same is not true for all UK regions because “regional variations are becoming increasingly visible with the picture on rents and capital values broadly reflecting the emerging economic recovery”