Commercial property 'is not overvalued'

Posted: 05 Aug 2010 10:56:54 GMT

The UK commercial property market has not become overvalued because of recent price rises, one expert has stated.

Property economist from Capital Economics Ed Stansfield said the country has actually seen one of the stronger recoveries during the downturn.

"Obviously it saw one of the bigger corrections in 2007, 2008 and the early part of 2009, but it has seen one of the bigger upswings," he added.

Mr Stansfield noted the size and liquidity of the UK has advantages, but the notion it is the most attractive market just in terms of pricing is up for discussion.

The specialist's comments follow the release of the Global Investment Perspective report from HSBC, which revealed the country is the most appealing unlisted market based on valuations.

However, the Royal Institution of Chartered Surveyors recently claimed chartered surveyors have reported a fall in tenant demand during the second quarter of this year compared to the same period in 2009.

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