Commercial property 'has seen private buyer influx'

Office design news from Morgan Lovell

Published on 09-09-2008

Commercial office interior development has seen an influx of private buyers since the credit crunch began, according to a property expert.

David Sandeman, managing director for the Essential Information Group, commented that the type of investors in commercial property has changed from predominantly major property investment companies to private individuals interested in the long-term gains to be found in such buildings.

He noted: "With the commercial property market, we are seeing properties sell when they come to auction; they're still selling much better than the residential side by 60 per cent but the volumes are down."

According to the Commercial Development Activity report by Savills Project Consultancy, 40 per cent of commercial property developers reported a decrease in overall activity in July 2008, with just 6.6 per cent reporting a rise.

Meanwhile, it found that in the last 12 months there has been a 53.7 per cent decrease in the number of commercial properties sold in the UK.