Commercial Finance Specialists

Many property investment firms are backing out of Welsh commercial development projects as confidence falls, it is claimed.

Demand for commercial property in Wales is continuing to fall, according to an industry expert.

Paul Rogers, partner in Commercial property at Chandler KBS believes that many property investment firms are cancelling planned commercial development projects in the region at the last minute.

This is driven by a lack of funding, which in turn leads to reduced confidence and cold feet, he told the Western Mail.

Mr Rogers' comments follow a report from the Royal Institution of Chartered Surveyors, which found that just two per cent more of its members are reporting rising rather than falling demand for Welsh commercial property.

This figure for the second quarter of 2010 is down from the 11 per cent recorded in the first.

"While there is evidence that some tenants who have a strong core business are taking space in empty buildings, having been tempted by the incentives and deals to be had, they are few and far between," Mr Rogers told the publication.

Property services company King Sturge recently claimed that the UK commercial property market is "patchy" with London being the only region to show real potential for growth.

Posted by Tess Nelson.