A survey of 170 property professionals by Investec Private Bank has found that just 27% forecast any retail rental growth this year and next.
By contrast, 58% expected rental growth in the office market.
Just over 45% thought default levels on commercial property would increase from their current low levels.
Only 8% thought they would fall. Almost two-thirds of investors thought banks would find it more difficult to finance UK commercial property at current loan to values.
However, most said they would continue buying commercial property this year.
Just 7% said they would reduce exposure to the market and 58% said they were set to increase it.
References: Financial Times 05/01/07 page 4
