At the beginning of this year it was reported that London is out of the financial short fall but there was still a misconception about the stability of the property market especially the commercial real estate sector. However the commercial real estate sector of London started moving towards improvement but the real estate experts eyed that there will be a bearish trend in the property market of London after the first quarter of 2010.

It was forecasted that this bearish trend will be a result of cyclic improvement after which the commercial and the residential real estate sector of London will show a long term bullish trend but the property prices did not go down. According to some reports the capital values in commercial real sector of London have raised to 11% since July 2009 and this improvement has come almost about two and a half years but still it is lower than the property prices in June 2007.

Real estate analysts say that the reason behind the improvement in the commercial property prices is the allocation of properties by the investors and the institutions in the London market. Moreover, the occupancy rate and demand in London is really high due to which the property rates are currently rising with stability. The City and West End London has shown an increase in the prices from £42.50 per square foot to £49 per square foot. And the prime rents in West End have remained unchanged at £75 per square foot.

However, the commercial properties over all trend has shown an increase but the industrial properties in London property market has shown a decline of almost 5%. An increase in the industrial property prices of London is expected soon as the supply and development in the industrial real estate market is less than the demand.

As a dip in the commercial property prices was expected at the end of first quarter of 2010, which did not happen, still the investors and real estate experts doubt that the property prices will go down.