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Over the last couple of years, while UK commercial real estate has taken a beating, from Quarter 4 of 2008 through Quarter 3 of 2009, declines accelerated a bit. There are some challenges while some analysts see signs of recovery, and GDP growth continues to improve. There is a glimmer of home among investors who are looking for commercial property for sale London. • By equity market performance, a great deal of commercial real estate investment is fuelled. It's unlikely to help in a movement of funds into commercial real estate in the UK with the great volatility in European and American equities markets. • On repairing their balance sheets, it's very difficult to find a bank that isn't focused. Borrowers must look longer and work harder for loans as this makes leverage more difficult. Many house for sale in London are also available besides great options for commercial property. However, there are bright spots, even considering the challenges. With an expected 10%+ improvement expected in 2010, sentiment in the property derivatives markets is improving. Mostly from foreign investors in the London area and to some lesser extent in the regions, month over month investment activity continues to increase. Many websites have published preliminary data showing that investment market activity was 27% higher in May than in April, while nowhere near the boom levels of 2004 into 2007. When compared to past years, this is a reasonably strong report. By foreign investors, mostly European, April and May showed increased activity, but also more investing from UK-based institutions. During the same period, publicly listed real estate companies also contributed to investment. Net lending flows were negative in May and expected to continue into the months ahead, while this increased activity is a positive sign for the future, perpetuating the five quarter negative trend. On improving their financial performance and balance sheets, banks are still highly exposed, and focused. Risk aversion is the norm, with net sales of equities and net purchases of UK government bonds, with the situation in Greece and other negative news. As in the U.S., hoping that a turn-around will bring a healing allowing avoidance of default and foreclosures, lenders have been delaying action against borrowers behind in debt repayment. It is expected that the UK economy will show expansion in Q2, and possibly the next quarter, with retail sales rebounding. The soft economic activity that goes along with it helps to keep interest rates low, while the job market is still in the doldrums. This trend will remain into 2011 is the expectation in the real estate market. Toward modest improvement, this mix of financial positives and negatives still seems to point, but only time will tell. Cornerstoner is the author of this website: To know more about houses for sales in london and commercial property for sale London kindly visit cornerstonerealty.co.uk
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