Commercial property values in the UK
continued to post steady growth in March, with the latest index revealing that they rose 0.3 per cent nationwide. It is the 20th consecutive month that prices have increased, Investment Property Databank (IPD) research shows.
The firm said that the asset class is 17 per cent more expensive now than it was in late 2009, following a drop of around 45 per cent as a result of the global financial crisis.
"Results are again showing mixed signals, with slightly improving capital growth
entirely dependent on investor sentiment, while positions for rental values have weakened," said IPD's managing director for UK and Ireland, Phil Tily.
IPD revealed that retail commercial property produced the largest total return, at one per cent over the course of the month. This was followed by offices and industrial, at 0.8 per cent each.
However, despite seeing values increase, IPD noted that for the first time in four months office rents turned negative as a result of lower growth in central London and further levels of decline elsewhere in the market.
- Monday 18 April 2011