Released on = April 7, 2007, 3:09 am

Press Release Author = Assetz

Industry = Real Estate

Press Release Summary = The UK is currently riding the crest of a commercial
property price wave that is seeing record prices and investors from overseas looking
to spend their money in the British market. Last week it emerged that, outside the
traditional metropolitan powerhouses of London, Birmingham and Manchester, smaller
and more usually overlooked areas are also beginning to see a rise in commercial
property prices - and in rental yields.

Press Release Body = The UK is currently riding the crest of a commercial property
price wave that is seeing record prices and investors from overseas looking to spend
their money in the British market. Last week it emerged that, outside the
traditional metropolitan powerhouses of London, Birmingham and Manchester, smaller
and more usually overlooked areas are also beginning to see a rise in commercial
property prices - and in rental yields.



Towns such as Darlington, Stockport and Reading were tipped as places to consider
for a commercial property investment, as they are benefiting from good transport
links and a well-developed infrastructure. Despite all the positive news however,
some market operators - as will happen in any boom period - are already beginning to
fear a crash and are viewing property prices anxiously.



According to Matt Oakley of property consultants Savills, investors need not fear.
He says that property prices have reached an all-time high and, although the market
may well have peaked, it is not going to see a significant decline any time soon.



\"I think undoubtedly prices on assets that are not going to deliver above-average
rental growth going forward will fall over the next four or five years,\" he says,
adding: \"Yields are going to soften on secondary property in most sectors of the
market\". However, investors should not worry that there will be no demand for their
portfolio, according to Mr Oakley, as \"prime property is stuff the tenants want to
be in, and will want to be in in five years time\".





However, one analyst at least is predicting a downturn in the commercial property
market. Gerald Ronson, of Heron International, thinks that there could be
\"challenging times ahead\" for the sector. He told Finfacts.com that investors are
operating in a climate of \"over-confidence\". According to Mr Ronson, property fund
manage are going to find it \"increasingly difficult to operate\" in an environment
driven by high prices and market pressure.



In a report released this week, the Royal Institute of Chartered Surveyors said that
a \"buoyant\" commercial property market has been propping up the construction
industry. In fact, prices are so strong in the domestic commercial property market
that some British investors are now looking abroad, with Europe the preferred target
for many. There is also evidence that some investors are being more creative,
choosing to fund less obvious projects such as care homes for the elderly.

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