Insurance News Archive
Commercial property insurance holders 'see rental expectations rise'
Posted by Jonathan Walker
Commercial property insurance policyholders operating in the London office market are seeing rental expectations rising at the fastest rate in over two years.
A report from the Royal Institution of Chartered Surveyors (Rics) found that rental expectations moved above zero in the first three months of 2010 for the first time since the fourth quarter of 2007.
Available space declined for the second consecutive three-month period, which was a contributing factor in this boost, according to Rics.
The positive net balance of 57 per cent of surveyors forecasting improved rental price, compared to the previous reading of zero, was the biggest jump on record.
Oliver Gilmartin, Rics senior economist said: "The latest results suggest that a still modest recovery in lettings demand has greatly lifted rental expectations for London offices where development has floundered in recent years due to a dearth in development finance."
Kelvin Davidson, property economist at Capital Economics, recently said that there was optimism among commercial property insurance policyholders with regards to the performance of the UK market this year.
23 Apr 2010
