Investor demand on the up
Investor and occupier demand has continued upwards despite last month’s interest rate rises, according to a survey by the Royal Institution of Chartered Surveyors.
Investor demand continued rising firmly although a mild slowdown has occurred in retail and the industrial property markets. 26 per cent more surveyors reported a rise in investor demand as opposed to a fall down from 29 per cent in the second quarter. Interest rate rises have had little dampening impact on new business occupier enquiries for space as a stronger economy has supported business expansion.
RICS spokesperson Ian McRae said: “Borrowing costs have done little to dampen property investment. A strong economic outlook has allayed any fears that demand for commercial property assets have hit a brick wall. Investors are focussing on rising rental levels and are looking forward to greater income returns in the year ahead.”