Commerical property mortgages may be in demand as market recovers

29 April 2010

Written by Simon Whittaker

There may be a rise in property developers borrowing through commercial property mortgages as the upswing in the market continues, according to the latest Global Commercial Property Survey conducted by the Royal Institution of Chartered Surveyors (Rics).

Interest rates and improved yields are currently attracting investors to the commercial property market and this increased activity is supporting recovery in capital values.

More good news for commercial property investors comes in the increased availability of real estate in the first quarter and the slowing of rental declines.

This comes after Rics revealed a significant increase in rent expectations for London commercial property last week, suggesting that the commercial property market is picking up.

According to the Rics UK Commercial Property Survey, more surveyors reported a rise in anticipated rent for the first time since 2007.

Rics also said that optimism in the outlook for lettings has increased as activity rose in commercial property for the second consecutive quarter.

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