PROPERTY prices are strengthening, a survey has suggested.
The latest property and economic survey carried out among clients by commercial property agency Eddisons showed that 85% of respondents thought commercial property prices would increase or remain the same during 2010.
The findings suggest the sector may have reached the bottom of the cycle for most property asset classes.
In addition, 65% of respondents feel that prices at the end of 2011 will be higher than current values.
Simon Croft, director in the agency department at Eddisons, said: “These findings suggest there is renewed confidence in the property sector going into 2010.
“We could well see buyers of commercial property returning to the market to reap maximum value in advance of any price rises.”
Among other key findings, 40% of respondents were more confident about the general economy at the time of the survey than they were 12 months ago while 39% felt the same as they did at the start of last year. However, 20% of respondents feel less optimistic.
Some 64% of respondents are confident that the economy will improve during 2010 while 71% anticipate interest rates will rise between 1 and 2% during 2010 – with 1% being the most likely increase.
Asked about the forthcoming general election, 84% of respondents predict thatDavid Cameron’s Conservatives will form the next government.
As part of the survey respondents were also invited to comment generally on what measures they would like to see implemented to improve the current economic situation.
The common theme was reduced public spending, improved bank lending conditions and help with VAT, stamp duty and a removal of the burden of empty rates.
Said Mr Croft: “Our interpretation of these findings is that there is a mood of cautious optimism among our clients.
“The response to what actions are needed to improve the general economic conditions crop up consistently with our clients.
“It is clear for this optimism to translate to positive growth, interest rates need to remain low and bank lending conditions need to be less restrictive.”