Property market free of "boom and bust merry-go-round" - commercial mortgages

12 December 2006

Despite recent claims that the Manchester commercial property market may experience a decline, an expert remains optimistic that it has broken free of the "boom and bust merry-go-round".

Although property investors, such as those with buy to let mortgages, may have found that the market has been slower in 2006 than during the previous year, according to Rupert Barron, agency partner at Donaldsons, the economy remains "robust", the Manchester Evening News reports.

Acknowledging suggestions that the commercial market in the city is beginning to show signs that it may "overheat", Mr Barron argued that it remains in a stronger position than in previous years.

"The market may well plateau during 2007, but I don''t see it falling off the edge of a cliff," he told the newspaper.

According to the Investment Property Databank, commercial property gave investors total returns of one per cent during October, with office space outperforming both retail and industrial buildings.