RICS survey predicts credit crunch will dampen tenant demand in the commercial sector
Tenant demand will fall in the UK according to the RICS Global Commercial Property Survey.
According to the latest study, 23% more surveyors expect commercial rents to fall than rise as a result of the credit crunch and liquidity restrictions in the market.
It said challenging conditions look set to continue for much of Western Europe as investment demand and tenant demand edge further into negative territory.
RICS senior economist Oliver Gilmartin said: “Few markets have escaped the credit malaise which has engulfed commercial property activity since last summer.”
Across the world the picture is no better and tenant demand for global property has turned negative for the first time in over four years.
Gilmartin said: “What started in the developed world has spilt over into investment activity across several emerging markets.”