UK office space market 'continues to recover'

Office design news from Morgan Lovell

Published on 13-07-2010

Britain's commercial property market is maintaining a steady performance, with both investor confidence and capital growth increasing over the first quarter of 2010.

This is according to new figures by Invista Real Estate, which showed buyers are not only becoming more active, but are also lowering their purchasing criteria.

Individuals are now looking beyond just prime, well-located buildings and turning towards various options, including lower-end structures, the company stated.

Senior property analyst at the organisation Jeremy Marsh said investors will be protected in the short and medium term by a "historically high margin between property and government bond yields".

"We believe that UK commercial property market returns are set to ease in the coming 12 months," he noted, but added it will not be as dramatic as the slowdown experienced in the 1990s.

Earlier this year, the firm said Britain's office interiors market is being boosted by a rise in demand and "increasingly attractive returns".

Posted by Paul Kelly