Office interiors in the City 'will buck steady trend'

Office design news from Morgan Lovell

Published on 14-07-2010

City of London commercial property will remain extremely popular over the next two years, despite an overall static trend in the rest of the market.

This is according to a new report by BNP Paribas, which predicted capital values for office interiors to remain flat until 2012, but noted this area in London will be the exception.

Demand is likely to outstrip supply in the City, the company explained, although the recovery rate for the sector as a whole will be difficult to judge.

It claimed while the most recent downturn's effect on the industry has similarities to previous recessions, there are also differences that may have an impact.

"This time there has been no dumping of assets, no expectation of a sustained period of rapid growth in values, historically low interest rates and low levels of
speculative development," the firm said.

The news followed comments made earlier this week by James Gillett of NB Real Estate, who stated growth in London's commercial property market has been "without precedent".

Posted by Ian Johnson