UK Commercial Property Values Rise in April

Despite UK commercial property values rising 0.1 per cent in April, the market's rebound from the global financial crisis has slowed, Reuters reported...

Despite UK commercial property values rising 0.1 per cent in April, the market's rebound from the global financial crisis has slowed, Reuters reported.

Investment Property Databank (IPD) figures have revealed that commercial values were up 17.2 per cent since late 2009 when prices fell by around 45 per cent. Returns across all commercial property sectors totalled 0.7 per cent in April, down from 0.9 per cent in March, with this almost entirely driven by rental income.

"Flat or negative rental growth across all sectors and an apparent end to the repricing sequence meant that there was very little capital movement in April and indeed the first four months of the year," IPD managing director for UK and Ireland Phil Tily said.

Earlier this month, the organisation noted that British commercial property value growth slowed to 0.8 per cent in the first quarter, stating that investment returns were becoming more income based.

Elsewhere, Don Jordison, managing director of Threadneedle Property Investments, recently told the Financial Times Advisor that commercial property in the UK has experienced a "complete rollercoaster" over the past few years, with values falling by as much as 44 per cent since the peaks of 2007.

- Wednesday 18 May 2011

*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.