RICS say demand is continuing to outstrip supply
The commercial property market showed no signs of slowing down in Q3, with demand continuing to outstrip supply.
The Royal Institute of Chartered Surveyors (RICS) released their quarterly UK Commercial Property Market Survey this week and revealed that available office space in London had been most affected by the introduction of the Permitted Development Rights (PDR).
Introduced earlier this year, PDR makes it easier to convert office space to residential property, with the survey stating that over 10% of office space in London has been eyed for conversion.
The survey also outlined that the difference between new property and supply has continued to widen, with the office and industrial sectors most affected. This demand means that the outlook for rents and values remain strong, with office and industrial rents expected to rise at the quickest pace since the RICS market survey series began in 1998.
In terms of investment, the survey revealed that enquiries are continuing to increase, with the industrial sector in particular seeing a large spike in overseas enquiries.
The findings from the market survey are in line with research published by NovaLoca earlier this week, which revealed an increase in both enquiries and overall traffic.
The optimism and strength in the market is something that many agents who list with NovaLoca have been reporting, as well as the concerns surrounding demand and supply. It is believed that increased investment in projects will be needed so that available property can keep up with the ever growing demand.
Ultimately, the commercial property market has shown a continued growth and momentum in last 12 months, with no immediate signs of slowing down.
Looking for commercial property anywhere in the UK? Search NovaLoca to find the perfect office space, industrial unit, retail, leisure or land property for your business!
