Commercial Property Recovery Next Year

Commercial Property Recovery Next Year

According to Reita’s latest quarterly ‘property investment perspective’, a recovery in UK commercial property is not in store until at least next year.  Almost 58 per cent of the experts on Reita’s panel believe investment conditions will not start to recover until 2009.  Just over one quarter expect to see a recover beginning this year, while 8 per cent felt 2010 was more likely.

Just over half (54 per cent) believe the UK is facing a short-term dip in economic performance, 27 per cent believe a recession is in store.  Just 42 per cent of experts are tipping the level of expected returns from the UK commercial property market this year to be in the –5 per cent to 0 per cent band.  Almost a third said between –10 per cent and –5 per cent, while one in seven (15 per cent) expected to see returns of less that –10 per cent.

Our view

New fuel pipelines come online later this year as well as expected liquidity stability.  This will lead to companies becoming more confident meaning that shares in those companies will become more stable and likewise the commercial property that they rent or buy will again become favoured.

We suggest that if you like the longer-term picture of commercial property then now is the time to invest.

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