Looking ahead to next year, Colin Bell, operations director at InterBay, said: “Growth in 2007 is likely to exceed expectations, the business investment seen in the second half of the year will continue into next year and returns in the service sector will continue to fuel this investment further. We already know of large financial institutions taking up property in London and this type of demand will only serve to stimulate price rises in the commercial sector.
“If spending increases as it is expected to over this end of year period and continues into 2007, then the pressure that this puts on inflation means that interest rates will certainly not fall and may even raise to a peak of 5.25 per cent in the first few months. However, conversely this spending and the resulting investment means that if existing or prospective commercial property owners can afford the recent rate rises and have the capacity to withstand another, then 2007 will be a great year to be in the commercial property sector.”
