UK Commercial Recovery Falters

The recovery of the commercial property market in the UK has stalled, with values rising just 0.1 per cent for the second consecutive month in November, new figures show....

The recovery of the commercial property market in the UK has stalled, with values rising just 0.1 per cent for the second consecutive month in November, new figures show.

It comes after the market enjoyed 16 straight months of strong positive growth after a two-year downturn that wiped 44 per cent of value off the Investment Property Databank's (IPD) monthly index.

However, growth has slowed dramatically since the summer and the overall market is expected to continue to struggle in the coming months, with concerns surrounding the health of the economy affecting investors' decisions.

"Of course uncertainty remains, but less dramatic movements in underlying values will have brought some relief to commercial property investors looking to understand risk in their portfolios," said Mal Hunt, IPD's head of UK and Ireland client services.

"Since the property market recovery first emerged in August 2009, capital values have now rallied 16 percent, level with December 2008 prices, and over the longer term, prices are level with the start of last decade."

- Thursday 16 December 2010

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