Commercial property market 'will stabilise in 2010'

Office design news from Morgan Lovell

Published on 15-07-2010

Commercial property in Britain is likely to stabilise in the latter half of this year, one expert has suggested.

Kelvin Davidson of Capital Economics said office interiors growth will slow in 2010, but this does not necessarily mean a fall in prices.

He remarked: "We have had the view for quite a while that prices would start to level off from the third quarter, so it is in line with what we have been expecting."

According to Mr Davidson, the sector's growth will remain static until the end of this year and will stay this way further into the future due to bond yields being low.

His comments followed statistics by the Investment Property Databank that showed office space capital growth rose 0.5 per cent in May.

While it could be said the remainder of the year will be "weaker" in terms of growth, he explained, this just means prices are unlikely to go up as much as in previous quarters.

Posted by Paul Kelly