Commercial property investors 'targeting the auction market'

The commercial property auction market is expected attract much investor interest in the coming months, according to a new study.

Research by Savills has revealed that 67 per cent of investors are looking to buy either in 2010 or 2011, with the south-east of England particularly attracting interest.

While the retail sector tends be important in the auction market, the study found that it is not dominating the thoughts of potential buyers, who are looking at a wide range of sectors from healthcare to industrial.

Simon Parker, head of commercial auctions at Savills, said the level of interest from investors has become "an encouraging sign for the market".

"It is also very interesting as 16 per cent of buyers predicted further falls in 2010 and while judging the bottom of the market is crystal ball gazing, these cautious respondents must be fairly confident of a bounce back in 2011 if they are looking to buy now," he added.

The release of the figures has come after the Investment Property Databank revealed that capital growth in March reached 1.6 per cent.