Commercial property market show slight improvement

New research from accountants and business advisors BDO Stoy Hayward reveals a "tentative recovery" in conditions reported by developers and contractors, helped by a pick-up in major commercial transactions in March.

BDO's "Commercial Real estate review"showed that there were 9,000 commercial transactions for the month,the highest number since October last year.Meanwhile, total property returns have stabilised in the first quarter since the fall in the autumn last year.

Solly Benaim, head of real estate and construction at the accountancy firm said: "Our tracker shows a number of encouraging indicators which have been absent over the past 18 months. In particular, the easing of credit conditions and opportunistic transactions by cash rich investors, suggests that the property investment market may stage a tentative recovery in the coming months."