Commercial property demand stabilises at last

Business demand for commercial property has stabilised after nine quarters of decline, a survey published by the Royal Chartered Institution of Chartered Surveyors (RICS) today (Tuesday) has revealed. 

A recovery in economic activity has signalled a levelling off in occupier demand for both office and retail property, including the key London office market.

New enquiries for commercial space have also bottomed out, providing a welcome fillip for confidence in a sector worth 12% of GDP, or £120bn a year. Chartered surveyors are hopeful of a modest rise in commercial property demand in the last quarter, the first positive expectation since the end of 2000.

RICS chief executive Louis Armstrong said: "This quarter we have seen some encouraging signs. It is too early to say we have turned a corner but it looks like we are approaching the corner at least.

"The increase in lease duty, though, is an ill timed blow, particularly within the retail sector. The right property strategy has never been more important."