Commercial mortgage holders in central London 'to see strong returns'

13 August 2010

Written by Steve Olejnik

Commercial mortgage holders in central London may see strong returns over the next couple of years, as one industry expert has predicted the city will continue performing well.

Patrick Sumner, chairman of Reita, argued that rental expansion remained firm in the capital, while low interest rates were also having a positive affect on investors' earnings.

However, a survey of Independent Financial Advisers conducted on behalf of the body found that 24 per cent of the 269 respondents felt commercial property prices would fall.

Peter Cosmetatos, the organisation's programme director, explained that the market was mixed.

While prime property has performed well over the last year, secondary and tertiary assets are not as strong, he said.

This comes after HSBC's Global Investment Perspective report recently said Britain was the global leader of the commercial real estate industry in terms of investor demand and valuations, with property economist at Capital Economics Ed Stansfield explaining the market had seen a large upswing.

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