Demand for commercial property to grow next year

Photo: Quinet

Demand for commercial property is expected to grow next year, according to Knight Frank.

The agency conducted a survey of property professionals at a breakfast last week and found that over 93 per cent of them said they believed investor demand would be “significantly stronger” in 2014 compared to this year.

200 delegates took part in the survey, with 35 per cent saying that demand would be “much” stronger, up from 8 per cent last year, as confidence in the sector grows. Indeed, 58 per cent of delegates said demand would be “slightly” stronger. Only 5 per cent said there would be no Change in demand levels.

Most delegates said there were targeting the UK and Germany, comprising 39.4 per cent and 23.2 per cent of votes respectively. Spanish commercial property followed close behind with 11.6 per cent of votes. France and the Benelux countries saw their share fall to 5.8 per cent, although they remained ahead of both Poland and the Nordics.

The office sector was the most popular among professionals, taking the top spot from retail property amid unemployment and weak consumer confidence. Residential’s share of votes rose from 11.4 per cent to 14.5 per cent.