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Commercial property insurance: Market slowdown 'a pause for breath'
23 Jul 2010
Posted by Jonathan Walker
The drop in demand currently being felt by commercial property insurance customers is simply a "pause for breath" after a series of large deals in past months, according to one estate agent.
James Roberts, head of Central London research at Knight Frank, said: "There were above average levels of take-up in the City between quarter three 2009 and quarter one 2010 so after nine months of above average take-up, you are going to have a pause for breath."
Demand for commercial property fell in the second quarter of 2010 for the first time since the start of 2009, while confidence has also dropped for the first time in a year, according to the latest report from the Royal Institution of Chartered Surveyors (Rics).
Mr Roberts said that although confidence has decreased in the sector, the completion of one or two large property transactions would "certainly" help to boost the industry.
The Rics survey revealed that tenant demand for offices declined across all parts of the UK, with London seeing the biggest fall in confidence as 38 per cent more members noted a fall than a rise in office space enquiries.
