Commercial property sector 'remains volatile'

Office design news from Morgan Lovell

Published on 19-04-2011

The UK commercial property sector continues to remain volatile at present as a result of the rest of the country lagging behind the London market, it has been claimed.

Mat Oakley, director of commercial research at Savills, said outside of the capital, the office interior rental and investment sector is still awaiting a sustained recovery and this is unlikely to be seen over the coming months.

He commented: "Until the other major non-London markets begin to recover, rental growth on this national all-property level is going to be relatively volatile."

However, Mr Oakley noted that investors should not worry, as a recovery will come eventually.

According to the latest commercial property index from the Investment Property Databank, a modest upturn in capital growth at 0.3 per cent was reported in March 2011.

However, four consecutive months of overall market rental growth came to an end in the month with a 0.1 per cent fall.

Posted by Ian Johnson