Property ''exceeds 2007 returns expectations'' - commercial mortgages

03 March 2008

Returns on commercial property were better in 2007 than expected, new figures have indicated.

According to the Investment Property Databank (IPD) annual index show that last year the balance of profit and loss was that of a 4.6 per cent rental gain and a 7.7 per cent loss in value, Property Week reports.

This return of -3.4 per cent is better than early indications had suggested, it adds.

In a comment which may be of interest to those with commercial property mortgages, IPD research director Malcolm Frodsham said: "A weak economy will feed through to weaker rental growth but any strong economic news should bring buyers back into the sector."

Commenting on the state of the UK commercial property market at present, the Financial Times said today that it was going to be very difficult to predict what was going to happen next.