Commercial property might ‘flood the market’


Commercial property could flood the European market in the coming years, according to a new survey by the European Association for Investors in Non-listed Real Estate Vehicles (Inrev).

Reports in the Daily Telegraph indicate the Inrev’s belief in the potential for €43 billion worth of assets coming on-stream, as office space and warehouses come to the end of their lease and are up for offer.

While some of the funds and the leases could be extended, Inrev has said it is possible that as much as €27 billion could come on to the market in one year.

The property market in the UK is currently at a turning point according to many investors, although debate about the future trajectory of the market continues.

At present, while the market is slowing down, most commentators ate not expecting a crash, particularly in light of the recent cut in interest rates.

Earlier this month the monetary policy committee voted unanimously to bring the base rate down by a quarter percentage point with most experts tipping further cuts in the early part of next year.

Lower borrowing rates could spark more movement in the business property sector, although the credit crunch and economic slowdown may inhibit the market.