Insurance News Archive
Commercial buildings insurance could soar in line with property demand
Property owners have seen the value of commercial property soar thanks to a combination of a lack of lending and strong demand.
The trend, which could also see an increase in commercial buildings insurance, is slightly surprising given the nervousness and volatility in markets such as European sovereign bonds, Asian stocks, commodity prices and the US Treasuries.
Research by LaSalle Investment Management found that while the world's real estate for business is performing well, some spots are more lucrative than others. London in particular has been earmarked as a hot spot.
Jacques Gordon, global strategist at LaSalle, said: "It is remarkable how quickly capital has returned to real estate. The re-emergence of a competitive credit market, so quickly after the bursting of the credit bubble, is also astonishing."
LaSalle's report suggests that, within Europe, Germany, France, the UK and the Nordic countries all have commercial property markets which offer the best protection from the financial turmoil.
Posted by Judith Stevenson
17 Aug 2011
