We were looking at some of the headlines regarding the commercial property market for 2023, and they presented a mixed picture. The effect of higher interest rates, and higher costs have meant that some businesses are feeling the pinch. And some forecast have predicted that this might have an impact on commercial property values and rental income.
However, it is not all doom and gloom. Most economists are predicting that interest rates will not rise as fast as they did in the back end of 2022, and that they might even start falling by the end of the year.
What does this mean if you are looking at getting into commercial property investment or development?
There will of course be opportunities for those who are able to find them. There will be variances in performance in different locations, different property types and different sectors. So the right investment could still yield positive returns, even if you might have to look harder to find the right opportunity.
Whilst we can’t predict what the market will do, we can tell you that there are lenders who have the capital to support borrowers with their projects. So speak to ASC if you want to find out more about what finance might be available.
