Demand for commercial property market to continue - commercial mortgages

02 January 2007

Demand for property from investors, including those with commercial mortgages, is set to continue in 2007, a new report reveals.

According to investment firm Jones Lang LaSalle, significant rental growth and favourable economic conditions are expected to boost the commercial property sector in Europe, offering investors positive returns, reports Reuters.

Commenting on the strength of the market, Tony Horrell, chief executive officer of European capital markets at the firm, said: "We see no sign of investor demand declining during the course of 2007 and expect the flow of funds allocated to real estate to continue."

The Investment Property Databank recently reported that commercial property had delivered a 19.5 per cent return during the 12 months to the end of November 2006.

Investors in office property continued to enjoy returns of 1.8 per cent during November, with such investments outperforming both retail and industrial properties.