Commercial Finance Specialists

The UK commercial property market will experience a "mini boom" in 2010, it has been claimed, but this is not without additional risks.

Investors with property investment interests in the capital could begin to see a rise in demand this year, as firms start to hire again, it has been claimed.

London could be set for a mini boom in commercial property rentals in 2010, which will extend to the rest of the country later this year, according to Capital Economics.

However, property economist at the economic research consultancy Kelvin Davidson warned that if the mini boom is sustained, the commercial development market could be exposed to more risks.

He said: "Certainly the risk is that the longer this mini boom goes on, the higher the chances are that the market returns to being overvalued and the greater the scope for falls later this year and perhaps in 2011."

Mr Davidson was responding to the commercial property report from King Sturge published earlier this week, which indicated that London commercial rents will increase by 10.5 per cent by the end of 2010.