Commercial Finance Specialists

UK commercial property is becoming more popular among investors as the value of the pound continues to decline, it has been claimed.

UK commercial development investment has become more attractive over the last couple of years with the declining value of the pound, it has been claimed.

This has contributed to the visible lag in turnaround between European real estate and the UK, according to the Royal Institution of Chartered Surveyors (Rics).

UK commercial property investment is therefore "quite an attractive investment" compared to euro denominated assets, Rics senior economist Oliver Gilmartin explained.

In particular, he underlined the influence a cut off in commercial development in London may have on rents.

He explained: "The recovery in rents could be quicker, but it is dependent on how the global economy recovers and how strong that global recovery is.

"As yet there is still a debate as to how strong the pick-up will be once the stimulus measures are withdrawn from the economy."

His comments follow the publication of a new report by Knight Frank earlier this month, which suggested that central London property is set to undergo double-digit growth in 2010.