New research shows transaction numbers rallied in March and returns stabilised in the first quarter

New research from BDO Stoy Hayward has revealed an improvement in the commercial property market, as reported by developers and contractors.

The accountancy firm reported a strong rise in commercial transactions in the UK in March, in its latest commercial real estate review.

The review, which analyses and provides an insight into developments in the property industry, showed around 9,000 commercial transactions valued above £40,000 were completed during the month.

This is the highest number recorded since October last year. Meanwhile, total property returns have stabilised in the first quarter since the freefall of the autumn last year.

The review suggested that prime investment property yields were firming for the first time in two years, which BDO said fuelled sentiment in the industry that the “days of negative debate of the past few months are numbered”.

Solly Benaim, head of real estate and construction at BDO Stoy Hayward, said: “Our tracker shows a number of encouraging indicators which have been absent over the past 18 months.

“In particular, the easing of credit conditions and opportunistic transactions by cash rich investors, suggests that the property investment market may stage a tentative recovery in the coming months.”