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Print articleInvestors Advised of 0% Commercial Property Growth
February, 2008 -
Investors in Scottish commercial property have been warned that the sector may see a zero per cent rate of growth in 2008 as supply continues to outstrip demand.
In comparison to the situation just 12 months ago, where there were ten buyers for every commercial property put on the market, now ten sellers exist for every purchaser, new research from industry consultants Drivers Jonas has revealed.
According to the firm's latest report, market figures confirm that ten years of growth within the sector has now come to an end, with demand and prices set to decrease over the coming months.
"Anyone who is playing in the market right now will know there's completely negative turnaround," said Andrew Kubski, partner in the investment team at Drivers Jonas.
However, he added that the market is just "taking a breather" at the moment, with the fundamentals still in place to guard against a recession of the kind seen in the early 90s.
The comments come soon after the Blenheim Place property development located on Edinburgh's Royal Terrace sold for £2.95 million below its asking price of £13.25 million, while retail developments in Glasgow have also suffered from falling prices.
In comparison to the situation just 12 months ago, where there were ten buyers for every commercial property put on the market, now ten sellers exist for every purchaser, new research from industry consultants Drivers Jonas has revealed.
According to the firm's latest report, market figures confirm that ten years of growth within the sector has now come to an end, with demand and prices set to decrease over the coming months.
"Anyone who is playing in the market right now will know there's completely negative turnaround," said Andrew Kubski, partner in the investment team at Drivers Jonas.
However, he added that the market is just "taking a breather" at the moment, with the fundamentals still in place to guard against a recession of the kind seen in the early 90s.
The comments come soon after the Blenheim Place property development located on Edinburgh's Royal Terrace sold for £2.95 million below its asking price of £13.25 million, while retail developments in Glasgow have also suffered from falling prices.
