Demand for commercial property ''still strong'' - commercial mortgages

02 August 2007

Business'' demand for commercial property remained stable in the second quarter of 2007, according to the latest commercial property survey from the Royal Institution of Chartered Surveyors (Rics).

Rics has revealed that 13 per cent more chartered surveyors reported a rise as opposed to a fall in demand from April to June, roughly in line with the 16 per cent figure recorded for the first quarter of the year.

Demand in London was especially strong, the report noted, adding that surveyors confidence in rental outlook reached its highest level for over six years.

"Record rental expectations offer investors some comfort that continued growth will support returns. The global economy is supporting the commercial property sector and investor appetite for the asset class has not dried up," commented Ian McRae, Rics commercial property spokesperson.

Landlords with commercial mortgages are currently enjoying a prolonged period of growth in the London office market, Knight Frank revealed last month.