Influx of distressed properties to the market | 7 June 2011
There has been a marked increase in ‘distressed’ properties coming on to the market at home and abroad.
A distressed property is one that is facing closure or sale by its mortgagee and following the recent economic downturn, a record number of these properties have come on to the market.
The news is good for those looking for a commercial property investment as it could provide them with their opportunity at a fraction of previous or potential costs.
The findings, by the Royal Institute of Chartered Surveyors (RICS), claimed that Britain’s number of distressed properties is following the global trend and the volume could grow even further in coming years.
Chief economist at RICS, Simon Rubinsohn, told My Introducer: “As the global economy continues to strengthen, central banks must begin to address the spectre of rising inflation; a threat which is compounded in some markets by the continuing European sovereign debt crisis.”
Nicholas Leeming, business director at Zoopla, however, suggested that London’s housing market is “very strong” telling Mortgage Introducer that the influx of distressed properties will outstrip the demand, potentially making it an even more attractive prospect for potential investors.
Written by David Howells on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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