According to a new report, all may not be quite as hunky-dory as we thought as far as UK commercial property is concerned.
Recent news reports revealing London is second only to New York when it comes to commercial property, with big organisations and small players alike interested in setting up offices in the capital city.
But according to Lloyds Banking Group, the confidence in the country’s commercial real estate is diminishing. They feel this could be a sign of a looming global economic slump, a theory backed by reports of construction and real estate companies filing for bankruptcy also making headlines of late.
The Lloyds Banking Group conducted a survey among representatives from the commercial property sector to better understand the investor and market sentiments. It looks as if the sentiments are not as optimistic as one might imagine. In fact, the survey found a lack of confidence in the commercial property industry’s future among those who know it best.
This is the first negative sentiment that has been registered in the past one year. The prevailing stability in the market was attributed to the fact that many large businesses were optimistic about setting up offices and expanding their presence.
Fund managers in particular had a pessimistic view, and believed that the sector will not pick up in the next six months. Lloyds Banking Group said that this dwindling confidence was influenced by global factors, including turmoil in the financial markets and Europe’s debt crisis.