'Positive news' for commercial property mortgage market

20 October 2009

Written by Jeni Browne

It has been suggested that "the principal recipient" of recent good commercial property news is the city of London.

Clive Bull, head of central London investment at real estate advisor Cushman & Wakefield, said that there has been an increased demand for this type of property and most of it is coming from international investors who tend to look to the capital.

Once they have taken out commercial mortgages or bought property in London, they subsequently move to the provinces, he added.

"Across the board you are seeing a greater demand for property," Mr Bull explained. "It is international investors, but outside London there is big demand coming back from the institutions."

This positive outlook for the commercial property mortgage sector comes after October's Investment Property Databank Monthly Index showed that capital growth in the British market increased by 1.1 per cent in September - the largest rise since June 2006.

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