UK offices 'not over-valued'

Office design news from Morgan Lovell

Published on 05-08-2010

Commercial property in the UK is not over-valued, one industry professional has claimed.

According to Ed Stansfield, property economist at Capital Economics, the fact the office market has seen gains over the last few months does not mean that properties are now more expensive than they should.

Indeed, as the market saw significant reduction during 2007, 2008 and the start of 2009, it is at present still in a very healthy position.

He commented: "The bottom line is that there is not a lot of evidence to suggest that the UK market has become over-valued as a result of the upswing."

Meanwhile, the Royal Institution of Chartered Surveyors reported last month that demand has fallen in the UK commercial property sector with seven per cent more chartered surveyors reporting a fall rather than a rise in tenant demand in the second quarter.

It revealed that tenant demand for offices declined across all regions, with London seeing the biggest fall in sentiment.

Posted by Ian Johnson