There is a renewed sense of vigour amongst commercial property investors as 67% are looking to purchase commercial property in 2010 and 2011, according to Savills.

It has also noted a decrease in the number of ‘hold’ buyers and that these buyers are set to become more acquisitive over the next two years.

Simon Parker, head of commercial auctions at Savills, said: “This change in sentiment from investors is definitely an encouraging sign for the market and represents the renewed investor confidence. It is also very interesting as 16% 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.”

The south east of England appears to be the most popular location for investors in the next 12 months as 52% are looking to purchase in the region. The retail sector did not dominate buyers’ appetite as Savills recorded interest for a wide range sectors from healthcare to offices and industrial.

With regards to buying strategy, the most important rationale for investing is income return, reflecting the importance of security. Due to a limited debt market, the majority of buyers are cash rich, so are seeking better returns and security than they will get from bank saving rates and other forms of investment. Lease length, as a result, remains crucial with respondents who are mainly interested in high street shops and healthcare properties placing it in the ‘vital’ category, according to Savills.

Parker said: “There are two definite buyer categories currently in the market, both cash rich, but the first and largest has a defensive strategy looking for secure income where increases in asset values are less important. The other is the entrepreneurial investor looking to acquire high risk properties at a discount price, aggressively asset manage to maximise value and look to trade on in the future. The auction market can accommodate both types of buyer as the properties and prices they seek are very different.”