Well-located commercial property still in demand, says developer - commercial mortgages

25 January 2008

In news which may interest those looking at taking out commercial mortgages, a property developer has stated that demand for commercial property remains high in some areas.

Real estate developer Great Portland Estates said the West End of London, where it specialises, is still experiencing high demand and falling vacancy rates, with rental values rising 3.7 per cent during this period, homemove.co.uk reports.

However, the company stated, less well-located areas were more vulnerable to market turbulence, with this causing the company to lose 6.5 per cent of the value of its share assets during this time.

It predicted the current market situation would continue this year.

However, there have been predictions that recent share price falls, including those in property stocks, will soon be reversed.

Bob Parker, the deputy chairman of Credit Suisse Asset Management, predicted that matters would improve as interest rate cuts took effect over the coming months.

He said: "We''re in the danger zone now but historically speaking the market is looking cheap."