If you are one of our commercial property insurance clients you may be rather depressed by the latest survey result from the Royal Institution of Chartered Surveyors. The RICS UK Commercial Market Survey for Q3 2011 shows occupier demand falling back for the first time in twelve months.
After rising over the previous 3 months, overall tenant demand retreated in Q3, moving into negative territory for the first time in a year. In addition, London’s commercial property market, which had looked much stronger, failed to increase. Surveyors attribute this to the uncertain outlook for the wider economy which is impacting negatively on demand.
The Olympics is probably driving some demand within the London area so it would be interesting, or maybe worrying, to see what the demand would be without that factor. Most people thought the Olympics would be too expensive, but maybe it is creating employment and demand at a time when it is most needed. It has to be said, that is totally down to luck rather then judgment!
This time next year the Olympic ‘boom’ will be well and truly over and it may only be then when we see just how bad the underlying problems are for the property market.
For more information visit www.rics.org
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