Is It Time To Get Into The UK Commercial Property Market?
For anybody who has asked me about commercial or mixed-use property in the previous several weeks, the recent RICS report nicely summarises my sentiments…
About three months ago, the general consensus was that the commercial property industry was in the early stages of recovery.
Fast forward to the present day, and the scenario has flipped. The industry today appears to feel that we are either about to enter a downturn or are currently in the midst of one.
The UK commercial property market is facing a variety of issues, including higher interest rates, deteriorating consumer sentiment, and sluggish investment demand. Things are not likely to alter anytime soon.
So, what’s going on?
> A deterioration in credit conditions, making it more difficult for investors to fund transactions. Poor consumer sentiment also contributes to reduced demand for shop space.
> Investor demand for office space has also stalled, despite recent increases.
> The outlook for industrial locations such as warehouses remains good.
