Stability the key to saving commercial property

The ailing commercial property sector could attract more investment if it regains a level of stability, experts have claimed.

According to the Royal Institution of Chartered Surveyors (Rics), the sector can end its run of crippling devaluation if it can bottom out.

Rics economist Oliver Gilmartin revealed that the office market was the most likely to show early signs of improvement.

He said: "The biggest challenges are currently in the retail and office market, with the industrial sector the most defensive of the three as it less dependent on the slowing UK economy."

Mr Gilmartin added: "There may be opportunities in the office market if things start to settle down especially for medium term investors as yields may start to look attractive."

Meanwhile, figures compiled by Knight Frank have shown that the value of commercial property in the south east fell by 26 per cent in 2007.

Property Investment News posted on 08/01/2008 16:36:57