The UK commercial property market has bounced back in Q3 following the sharp deterioration seen at the end of Q2 following the vote to leave the EU.
According to the latest Commercial Property Market Survey Q3 2016 from the RICS, sentiment turned positive in comparison to the previous quarter, with capital value expectations and occupier demand recovering noticeably.
Almost a quarter of members surveyed expect capital values to increase over the next 12 months, with prime industrial and office markets expected to see the strongest gains.
The quarterly survey that measures the responses from RICS members is a leading indicator of developments in the UK commercial property occupier and investor markets.
Steven Tasker, RICS registered valuer and associate at Bruton Knowles’ Manchester office said the results would add further confidence to the market.
“The responses suggest that overall the commercial market has been resilient and much more positive than initially expected. The survey shows occupier demand up 12 per cent compared to the previous quarter with more respondents reporting a rise in demand at an all-sector level. Overall, the outlook is looking positive for the next quarter.”
Colleague Nicholas Broadway, RICS registered valuer and surveyor at Bruton Knowles added: “It would appear that businesses are continuing as normal after the initial pause for thought following the events in the previous quarter.
“The North West market is continuing to attract demand with good activity and speculative development taking place. We have seen an increase in enquiries over the past few weeks, with a continuing demand in valuation instructions for loan security and occupational acquisitions across the region supporting the findings in the latest RICS report.”
Investment enquiries have also seen an increase in Q3 after a steep fall in Q2 with 9 per cent more respondents seeing a rise in investment demand.
Appetite for foreign investment has also improved across all sectors as overseas purchasers look to buy prime assets on the back of the weak pound.
Some 86 per cent of respondents said they had not seen any evidence of companies looking to relocate activities away from the UK.
