Commercial property returns ''will be at 7-8%'' - commercial mortgages

03 August 2007

Commercial property returns for 2007 will come in at around seven to eight per cent, according to the F & C Commercial Property Trust.

While such figures do indicate that the sector is slowing, they still illustrate the significant returns available to those with commercial mortgages.

The firm also added its voice to the numerous market observers who have suggested that central London is continuing to drive overall market performance, saying that strong demand and rental growth have made the sub-sector highly successful.

"Having experienced three years of exceptional total returns, the UK commercial property market is now slowing," commented F & C Commercial Property Trust chairman Peter Niven.

But the office market continues to attract interest, with the Royal Institute of Chartered Surveyors reporting earlier this week that London office market sentiment currently stands at an all-time high, with the greatest levels of activity found at both the top and the bottom of the market.