The UK commercial property market has seen "spectacular" growth in the last year, but things are now beginning to return to normal, a real estate agent claims.
The UK
commercial development market is "pausing for breath" after a spectacular performance in the last year, it is claimed.
In its latest report, the Investment Property Databank claims that
property investment firms have seen capital growth of 10.8 per cent in the last ten months.
However, commercial development companies should expect things to go back to normal as they realise that they can no longer just rely on yield shifts to provide their return and will instead have to purchase assets with rental growth opportunities, according to real estate agent Savills.
The firm's head of commercial research Mat Oakley added that there are still concerns about the future of the market outside of the capital.
"When you get outside London, there are questions about the impact of public sector spending cuts and indeed job cuts and what does that mean for demand for property in those regions," he said.
Posted by Tess Nelson.
Latest News 
