Commercial Finance Specialists

The UK commercial property market has witnessed an "extraordinary recovery" after its dramatic crash during the recession, it has been claimed.

According to independent investor research firm Hemscott, March saw UK capital values for commercial development projects accelerate once again, rising by 1.6 per cent to give a growth for the first quarter of 2010 of four per cent.

In addition, total returns rose to 5.7 for the first three months of the year, the company indicates.

While Hemscott expects the growth in capital values to decelerate, it believes the longer-term outlook for prime rental returns remains very healthy, especially in London.

"With in excess of double-digit total returns forecast for 2010, property should provide attractive returns relative to the meagre offering from cash and government bonds," the company adds.

These comments will encourage property investment firms, who were earlier this week told by industry figures at the Thomson Reuters Global Real Estate and Infrastructure Summit that the commercial market is "buckling under the strain" of refinancing woes.

Posted by Tess Nelson.