Latest Insurance News
UK commercial property 'an attractive investment'
08 Feb 2010
Posted by Jonathan Walker
Commercial property insurance policyholders have seen real estate in the UK become an attractive investment compared to euro-denominated assets, according to an expert.
Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, said this is due to the pound declining by around 30 per cent against the euro over the past two years.
"The City of London market there has been a complete cut-off of development activity in the last couple of years and that is actually starting to manifest itself now in rental expectations," he continued.
He explained that the highest grade-A quality space has not been coming to the market recently, which is affecting rental prices.
Mr Gilmartin also said that European commercial property insurance policyholders have seen a lag in turnaround compared to the UK.
His comments follow research by King Sturge which suggested that prime central London commercial rents would increase by 10.5 per cent by the end of 2010.
