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Commercial Property News
Commercial property upturn 'to benefit financial sector'
Rising interest in the commercial property sector could help banks become profitable sooner than expected.
This is according to Reuters, which has suggested that financial institutions are set to benefit from providing loans that are being used to purchase real estate.
The news source noted that increasing demand for commercial property for sale has the potential to boost 2010 earnings figures from Lloyds Banking Group and Royal Bank of Scotland, which currently have loans on the books that are worth more than the property they are secured against.
Values are currently surging after dropping 45 per cent in the two years to August 2009 and global investment strategist for Standard Life Richard Batty said that property mark-ups will begin to become a feature on bank balance sheets "before too long".
However, Justin Bates, financial analyst at Daniel Stewart, added that banks should not expect to see significant mark-ups in the value of their business property portfolios until next year.
And, earlier this week, the Ernst & Young ITEM Club warned that the current upturn in the market may not be sustainable.
This is according to Reuters, which has suggested that financial institutions are set to benefit from providing loans that are being used to purchase real estate.
The news source noted that increasing demand for commercial property for sale has the potential to boost 2010 earnings figures from Lloyds Banking Group and Royal Bank of Scotland, which currently have loans on the books that are worth more than the property they are secured against.
Values are currently surging after dropping 45 per cent in the two years to August 2009 and global investment strategist for Standard Life Richard Batty said that property mark-ups will begin to become a feature on bank balance sheets "before too long".
However, Justin Bates, financial analyst at Daniel Stewart, added that banks should not expect to see significant mark-ups in the value of their business property portfolios until next year.
And, earlier this week, the Ernst & Young ITEM Club warned that the current upturn in the market may not be sustainable.
Tue, 2nd Feb 2010