Rising world interest rates toslow UK commercial property

The UK commercial property market may suffer in 2007 as rising interest rates in the US, Europe and Japan, increase the cost of borrowing for foreign investors. Property specialists believe the retail sector will be the worst hit compared to the office sector, which is expected to fair modestly on the back of a strong 2006. According to the Royal Institution of Chartered Surveyors (Rics), returns for the retail sector will fall to 5.6% in 2007 compared to 15.4% for 2006. Oliver Gilmartin, economist at Rics, comments: "The retail sector will bear the brunt of a consumer slowdown. Forei...