White Knight Associates believe the UK is unlikely to experience distressed commercial property growth next year, according to a property specialist.
It is unlikely the British commercial property will experience a price growth for sites ripe for commercial development in the coming months, says Kelvin Davidson, property economist at the economic research consultancy Capital Economics.
Mr Davidson has warned the price growth of UK commercial property has grinded to a halt, with prices likely to remain flat for at least the next 12 months.
He said: "There is quite a lot of money floating around and not much property for sale, so I would think that an increase in the number of properties to buy for whatever reason - whether it be foreclosure or whatever - would actually be quite welcome.
However WK Associates report that the Royal Institution of Chartered Surveyors (RICS) has indicated worldwide demand for distressed commercial property actually rose significantly in Q2 2011.
Following a survey conducted by the RICS it was revealed over 80 per cent of countries reported increased levels of interest from commercial property investment funds during Q2 2011.
WKA found Simon Rubinsohn, RICS chief economist, said: "It is interesting to see agents reporting a dramatic rise in investor appetite for distressed assets, quarter over quarter.
White Knight Associates believe to some extent, this may be seen as an encouraging development reflecting a measure of confidence in the outlook for the real estate sector despite the softer tone to the Market news.
Author: White Knight Associates
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