Eurozone and UK commercial property markets lagging behind

27/07/2010 11:54:56

The UK commercial property market has been performing relatively well over the last few months, with both the occupation and investment segments recording a number of notable deals.

However, this growth is low compared to South America, Asia and eastern Europe, according to the latest research from the Royal Institution of Chartered Surveyors.

The organisation's Global Property Survey revealed that these regions' commercial property markets outperformed those in the UK and eurozone in the second quarter of 2010.

While occupier demand is rising in other countries globally, the opposite is happening in the UK and eurozone, which are being affected by tough government measures to lower fiscal deficits.

London property asset management firms may be concerned to hear that occupier demand in the UK declined for the first time in a year, with the net balance falling from a positive 14 per cent to a negative four per cent.

Real estate firm Land Securities recently warned of a two-tier UK commercial property market - London and the rest of the country.

Posted by Sarah Dudley

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