RICS report shows lettings for business property slipped in second quarter of this year
Demand for commercial property in the UK has fallen for the first time in 12 months according to the latest report by RICS.
The RICS UK commercial market survey for the second quarter of 2010 shows that lettings activity for business property slipped back after a positive first quarter while tenant demand declined for the first time in a year, most noticeably in London.
Surveyors are reporting that budget uncertainty over the extent of cuts in public spending are impacting on the appetite of businesses to take up new space
Neil Prince of Matthews & Goodman said: “The occupational market in the West End seems to have stuttered in the past few weeks since the austerity measures were announced by the new government.
“The money that is to be taken out of the economy will take some time to filter through to demand, but will mean that there will be downward pressure on rent and growth in the medium term. Investment activity is coming mainly from middle eastern oil money seeing London as a good home for petro - dollars.”
Property markets in the more dynamic economies of South America, Asia and Eastern Europe are outperforming those in the UK and Eurozone says the survey. Occupier demand is rising in the majority of countries across the globe with the notable exception of the UK and Eurozone countries.