Insurance News Archive

Commercial property returns rising

Commercial property returns have witnessed an increase over the past six months, according to the Confederation of British Industry (CBI).

The latest survey on UK firms finds that holdings have risen for 31 per cent of commerical property owners, while 11 per cent reported a fall.

The difference of 20 per cent signifies an improvement on the seven per cent recorded by the same survey six months ago.

The CBI stated that good levels of employment had contributed to the impressive state of the commercial property market.

"The commercial property sector has benefited from the recent healthy economy and continues to look forward to a buoyant half year," commented Doug Godden, head of economic analysis at the CBI.

He added: "Whether that continues beyond this depends not just on domestic conditions but also on the impact of any US economic slowdown on the UK's economy."

Meanwhile, one in four companies expressed their intention to increase their commercial property portfolio during 2007.

15 Dec 2006