Commercial property seeing solid returns - commercial mortgages

05 October 2007

Firms with commercial mortgages are continuing to enjoy steady returns on their investments, according to Property Data.

The research was drawn from broker figures across the country and found that the worldwide financial crisis had yet to impact upon the UK''s commercial property sector.

However, some analysts have noted that recent deals may have been funded through loans agreed before lending conditions tightened this August, according to Reuters.

Nonetheless, total volumes sold are expected to surpass the £50 billion barrier by the end of the year.

Meanwhile the FTSE UK Commercial Property Index has revealed that returns in the third quarter of the year stood at 1.55 per cent, with commercial property still outranking the stock exchange, hedge funds and gilts in terms of returns delivered over the past 12 months.

Reuters has also revealed this week that the Royal Bank of Scotland has returned to the commercial property sector as it tries to arrange the sale of £650 million worth of hotels.