Commercial property investment to 'boom' this year

06 January 2010

Written by Michael Aglony

Those looking for commercial mortgages may be affected by claims that the markets across Europe "will remain soft" for the next two to five years.

Property consultancy group King Sturge yesterday (January 5th) released predictions on the future of the commercial property market.

It said that there will be a two-tier system emerging and that London will lead the office market recovery this year.

A "thin" letting market was predicted, with the take-up of office space expecting to be more selective.

This will lead to a surge in rental rates for offices - which could cost £47.50 per square foot to rent later this year.

Head of research at the company Angus McIntosh said: "2010 will be a boom year for commercial property investment."

But regional rents outside London in areas such as Leeds will not be as high, it was suggested.

King Sturge operates in major commercial centres around the UK and in European cities such as Paris.

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