The demand for commercial properties in Wales has risen for the first time in two years.

The Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor reported that occupier demand in all sectors was up in the first quarter of 2024.

Industrial space remains high in demand, and retail space has seen a positive upturn, marking the first since before the pandemic.

Surveyors have noted a net balance rise of 8 per cent in occupier demand at an all-sector level during Q1.

Demand for industrial and retail space saw a net balance increase of 31 and 9 per cent, respectively.

The net balance for office space demand observed a decline of -15 per cent.

Predictions for capital value forecast an optimistic quarter, with a net balance of 7 per cent of Welsh respondents expecting a rise, the highest recorded prediction since mid-2019.

Regarding rental expectations, surveyors are looking forward to a 4 per cent rise in the next quarter.

Chris Sutton of Sutton Consulting Ltd said: "Industrial rents continue to strengthen for Grade A new-build floorspace at St Modwen Park, Newport."

Meanwhile, RICS senior economist, Tarrant Parsons, said: "Occupier demand growth now appears to be gaining traction slightly, supported by the broader economy seemingly returning to growth."