Tim Pim Blog

A recent survey by the Royal Institution for Chartered Surveyors (RICS), suggests that Wales is witnessing an increased demand for its business property.

The study found that in the final quarter of 2009 the demand for industrial property and office space surged even though the same period saw the demand for retail space spiralling downwards. Out of all the three, office space registered the highest rise in demand across the fourth quarter.

Of all the chartered surveyors who worked on the study, 25 per cent said the demand for office space had surged in the last quarter of 2009, whereas 29 per cent pointed out that there was a shortage of office space demand during the third quarter of the same year. It was also seen that the amount of office space was reduced in the final quarter of 2009, in contrast to the third quarter where the amount of amount of available space had risen.

The study has brought a fresh lease of hope to the rent desk market since surveyors speculate that the drastic fall in rates will now come to an end. However, it is possible that rents may still dip slightly in the course of the next three months but this will not be as harshly as earlier.

The surveyors also noted that the fourth quarter saw a rise in the number of new office developments with lesser held up projects.

Even after all this good news about office space, Wales’ retail space has still not bounced back to normal with surveyors reporting a huge weakening in fresh inquiries for office space and the overall demand for the same. Twenty five per cent surveyors said there was a large decline in inquiries in the fourth quarter of 2009 compared to the third quarter where figures were better.