Rise in major transactions heralds tentative recovery for commercial property market

New research from accountants and business advisors BDO reveals an improvement in conditions reported by developers and contractors, helped by a pick-up in major commercial transactions in March.

BDO’s first ever Commercial Real Estate Review – which provides new analysis and insight on developments in the property industry – showed that around 9,000 commercial transactions valued above £40,000 were completed in March. This is the highest number recorded since October last year, while total property returns have stabilised in the first quarter since the free-fall of the autumn last year.

Data from the Commercial Real Estate Review also shows how prime investment property yields are firming for the first time in two years, further fuelling sentiment in the industry that the days of negative debate of the past few months are numbered.

Solly Benaim, Head of Real Estate and Construction at BDO, said: “Our tracker shows a number of encouraging indicators which have been absent over the past 18 months. In particular, the easing of credit conditions and opportunistic transactions by cash rich investors, suggests that the property investment market may stage a tentative recovery in the coming months.”

All eyes will be on the coming weeks to see if these signs of recovery translate into stabilising yields and improving conditions.

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For more information please contact Fergus Campbell at Blue Rubicon on 020 7260 2700, or Dee Crooks at BDO on 020 7893 2761. Out of office hours, please contact Fergus Campbell on 07899 908483.

Notes to editors:

1. The BDO Commercial Real Estate Review is calculated by analysing the results of a number of industry surveys

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