A surge in investment and occupier demand points towards continued economic growth throughout the remainder of the year, according to the Royal Institution of Chartered Surveyors (RICS).
The claim comes after the publication of the latest RICS UK Commercial Market Survey, which records the highest occupier activity since 1998.
It also reveals that the UK saw the 10th consecutive quarterly increase in demand for commercial property in the first quarter of 2015, with 46 per cent more respondents seeing greater interest.
There has also been a significant increase in investment enquiries, with 49 per cent more surveyors reporting that they are seeing more prospective investors, continuing the upward momentum which began in the final quarter of 2012.
Enquiries from overseas buyers rose by 34 per cent in the first quarter, a significant increase on the 17 per cent rise reported by respondents in the previous quarter.
The survey also highlights the impact of falling availability on rental expectations, with headline rents edging towards the highest reading since 1998. This is particularly evident in the office and industrial sectors, while retail rental levels continue to lag behind.
Going forward, respondents expect to see the office sector continuing to perform strongly, particularly in London. This is despite increasing fears over the valuation of prime property in the capital, where 45 per cent of respondents believe commercial valuations are ‘above fair’.
In summary, the survey indicates that the economy will continue to grow and this will have a positive impact on both prime and secondary space throughout the UK, with RICS concluding that it is hard not to be encouraged by the results.
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