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UK commercial property market "mixed" and "patchy"
The UK commercial property market is currently rather uncertain, with some areas of weakness but others where it is looking more positive.
This is the conclusion of Andrew Burrell, partner in research at King Sturge, who said central London business properties are expected to perform well in the coming months.
Assessing other parts of the global economy, he agreed it was fair to say commercial property markets in South America, eastern Europe and Asia are tending to do better than those in the UK and eurozone, where performance is "quite mixed".
This is due to the fact the European economy has had a slight knock this year, whereas countries in the emerging world may not have experienced such problems, Mr Burrell suggested.
In terms of the national business property situation, the expert claimed "there are strengths in the UK property market, but then there are also weaknesses".
Mr Burrell commented after the Royal Institution of Chartered Surveyors (Rics) reported commercial property transactions in the UK fell for the first time in a year, with demand also turning negative.
Rics noted the second quarter of 2010 has seen markets in South America, eastern Europe and Asia outperform the eurozone and UK, with Brazil leading the way.
And Poland and Russia seem to be doing well, Mr Burrell pointed out, explaining "Poland hasn't really had a recession".
A number of factors could explain the situation in the UK, with the general election, interest rates and political situation perhaps adding to the level of uncertainty.
Mr Burrell said: "Obviously it is a concern … Parts of the industrial sector are still a way from recovery as well, so it is patchy."
However, there are strengths in the market that are added to this and certain parts of continental Europe - as well as London - are expected to do well in terms of offices.
Posted by Darren Purse
This is the conclusion of Andrew Burrell, partner in research at King Sturge, who said central London business properties are expected to perform well in the coming months.
Assessing other parts of the global economy, he agreed it was fair to say commercial property markets in South America, eastern Europe and Asia are tending to do better than those in the UK and eurozone, where performance is "quite mixed".
This is due to the fact the European economy has had a slight knock this year, whereas countries in the emerging world may not have experienced such problems, Mr Burrell suggested.
In terms of the national business property situation, the expert claimed "there are strengths in the UK property market, but then there are also weaknesses".
Mr Burrell commented after the Royal Institution of Chartered Surveyors (Rics) reported commercial property transactions in the UK fell for the first time in a year, with demand also turning negative.
Rics noted the second quarter of 2010 has seen markets in South America, eastern Europe and Asia outperform the eurozone and UK, with Brazil leading the way.
And Poland and Russia seem to be doing well, Mr Burrell pointed out, explaining "Poland hasn't really had a recession".
A number of factors could explain the situation in the UK, with the general election, interest rates and political situation perhaps adding to the level of uncertainty.
Mr Burrell said: "Obviously it is a concern … Parts of the industrial sector are still a way from recovery as well, so it is patchy."
However, there are strengths in the market that are added to this and certain parts of continental Europe - as well as London - are expected to do well in terms of offices.
Posted by Darren Purse
Wed, 28th Jul 2010