Property market showing "positive signs"

There are some positive signs that the UK commercial property market is bottoming out, according to the Royal Institution of Chartered Surveyors (RICS).

Oliver Gilmartin, senior economist at RICS, which offers its members advice on a range of land, property, construction and environmental issues, said that yields have begun to stabilise and fall back on some prime property assets in recent months.

His comments follow the publication of relatively strong results from British Land, which have generated optimism that the worst effects of the recession may have passed.

"There are definitely some positive signs that the UK commercial property market is nearing a bottom having fallen by close to 50 per cent in value since the onset of the downturn," Mr Gilmartin stated.

However, he added that while prime assets are now receiving attention from equity investors focused on income quality, the economic downturn could still impact further in the secondary market.