The latest commercial market survey from the Royal Institute of Chartered Surveyors (RICS) has indicated that UK commercial property is very much in demand.
RICS’ statistics show that the first quarter of 2015 was the 10th consecutive period of growth in demand for commercial properties. Occupier demand for UK commercial property now stands at the highest level since 1998.
With the buy-to-let market also showing positive increases, the report indicates a more widespread reflection of overall economic recovery.
Responding to the report, John Kent, executive director at commercial real estate company CBRE, said that, ‘despite general election uncertainty, there is a great deal of confidence in the market.’
Interestingly, the survey also suggested that enquiries from overseas investors rose by 34% in the first quarter of 2015, up from 17% in the final quarter of 2014.
Demand with no supply
Increased demand however has put even more of a squeeze onto the UK’s already struggling property supplies. Joshua Pater of Collins International remarked that, ‘supply levels are now at their lowest since 2007.’
The report from RICS showed that available space did fall across all sectors. Retail was found to have declined the least, but both industrial and office space availability fell sharply.
However, many industry experts widely expect the property market to pick up further following the outcome of next week’s general election.