Commercial Property Figures Dropping
Written by JDPGlobal | Wednesday, 27 July 2005
JDP has examined recent property reports and is of the opinion that the demand in the housing market is now affecting the commercial property market.
The Royal Institution of Chartered Surveyors issued a report a few days ago stating that the overall picture was indeed flat. The second quarter of this year saw little growth and some surveyors around the UK have even reported a slight dip in sales.
It is not all bad news however. The same report by the Royal Institution of Chartered Surveyors has stated that there was a slight increase in the office market which previously was classed as being a depressed sector.
Higher interest rates and slower consumer spending has damaged the economic environment. This has inevitably affected the commercial property markets. Interest rates are expected to drop this year to a base of 4.25 percent which it is hoped will strengthen the economy moving into 2005.
With the expected drop in interest rates we would be expecting to see many businesses take advantage of the situation and begin to make some noises about increasing their portfolios, but instead we have not seen this happen. This may be a signal that many companies are feeling apprehensive about any possible expansion plans that they might have.
