Commercial property market ''still some way off recovery''
Date posted: 10 Oct 2009
The UK''s commercial property market may still have some way to go before a recovery begins, an expert has suggested.
While figures published by Savills recently revealed that a number of financial organisations are now willing to lend sums of £20 million or more to fund commercial property deals, one economist still believes active lending remains low.
Capital Economics property economist Kelvin Davidson commented: "We don''t think that there is suddenly going to be a reversal and commercial property lending is going to shoot away again.
The UK''s commercial property market may still have some way to go before a recovery begins, an expert has suggested.
While figures published by Savills recently revealed that a number of financial organisations are now willing to lend sums of £20 million or more to fund commercial property deals, one economist still believes active lending remains low.
Capital Economics property economist Kelvin Davidson commented: "We don''t think that there is suddenly going to be a reversal and commercial property lending is going to shoot away again.
"It all adds to the story that the market has reached a floor."
He added that it could take between 12 and 15 months before a recovery in the commercial property market emerges.
Meanwhile, Knight Frank suggested last month that prime office rents in London areas such as the City and the West End may start to grow next year.
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