The latest RICS UK Commercial Property Market Survey has just been published and reports overall conditions remaining firm at national level, with steadily rising demand for commercial property and a lack of supply continuing to push capital values and rents. However, RICS Survey respondents are beginning to scale back expectations for future growth, particularly in some sectors of the market where recent rental growth has been most notable. The RICS Survey also highlights uncertainties surrounding the EU Referendum which is reported to be dampening activity in several areas, particularly in the London investment market, where over 80% are reporting an impact.
In the occupier market, the RICS Survey predict rents to rise further over coming months across all sectors, although less rapidly than previous forecasts. The Survey predicts all sector rental increases of around 3% for the year with prime office and industrial space expected to see strongest rental gains and secondary retail the lowest. In the investment market buyer demands across the regions remain solid whilst supply for investment properties available on the market continues to increase.
RICS Survey contributor, Andrew Kilpatrick of Kilpatrick & Co reported “Enquiry levels in Q1 2016 are holding up reasonably well across Swindon’s main sectors, with solid take-up. Lack of quality stock, particularly of offices, is holding back the market. Town Centre retailing continues to be challenging, but demand for investment property appears buoyant.”
