Login to UKBP
Commercial Property News
Evidence 'does not show UK commercial property is overvalued'
The UK commercial property market has not become overvalued, an expert has stated.
Ed Stansfield, property economist at Capital Economics, spoke about the situation in response to the Global Investment Perspective report from HSBC.
He said: "The bottom line is that there is not a lot of evidence to suggest that the UK market has become overvalued as a result of the upswing."
HSBC revealed the results of its report on August 3rd, which detailed a number of predictions from the organisation about the best places to invest in business property around the world.
It named the UK as the "most attractive unlisted market", but the outlook for rental growth in this country was said to be weak.
The short-term view of business property in the UK, however, is positive because of its valuations.
HSBC also examined continental Europe and concluded the situation is rather mixed, as each nation has variations within it.
The more attractive places to invest were named as France and the Nordics, with Eastern Europe, Greece and Spain the "more troublesome" countries, it was noted.
When asked whether he agreed with the statement the UK is the most attractive unlisted market, Mr Stansfield replied: "I don't disagree with it."
Size and liquidity are the main advantages this country has to offer, but there is still a debate to be had in terms of pricing, he continued.
The Royal Institution of Chartered Surveyors last month reported its members have seen a fall in demand for business properties.
Some 7% more surveyors reported a fall rather than a rise in demand, which is in contrast to the positive 6% seen in the first quarter of the year.
Large corrections have been seen in the past three years, with the early part of 2009 continuing this trend, but there is now little evidence to prove the upswing has led to an overvaluing of the UK commercial property market, Mr Stansfield concluded.
Posted by Sarah Smith
Ed Stansfield, property economist at Capital Economics, spoke about the situation in response to the Global Investment Perspective report from HSBC.
He said: "The bottom line is that there is not a lot of evidence to suggest that the UK market has become overvalued as a result of the upswing."
HSBC revealed the results of its report on August 3rd, which detailed a number of predictions from the organisation about the best places to invest in business property around the world.
It named the UK as the "most attractive unlisted market", but the outlook for rental growth in this country was said to be weak.
The short-term view of business property in the UK, however, is positive because of its valuations.
HSBC also examined continental Europe and concluded the situation is rather mixed, as each nation has variations within it.
The more attractive places to invest were named as France and the Nordics, with Eastern Europe, Greece and Spain the "more troublesome" countries, it was noted.
When asked whether he agreed with the statement the UK is the most attractive unlisted market, Mr Stansfield replied: "I don't disagree with it."
Size and liquidity are the main advantages this country has to offer, but there is still a debate to be had in terms of pricing, he continued.
The Royal Institution of Chartered Surveyors last month reported its members have seen a fall in demand for business properties.
Some 7% more surveyors reported a fall rather than a rise in demand, which is in contrast to the positive 6% seen in the first quarter of the year.
Large corrections have been seen in the past three years, with the early part of 2009 continuing this trend, but there is now little evidence to prove the upswing has led to an overvaluing of the UK commercial property market, Mr Stansfield concluded.
Posted by Sarah Smith
Thu, 5th Aug 2010