The UK commercial property market was helped along by the performance of assets in London, the latest IPD UK Monthly Index has found. Overall, average returns from real estate remained in positive territory in September, growing by 0.6 per cent. Meanwhile, the organisation pointed out that this is considerably better than the equities market, where a five per cent decline in values was recorded last month. Capital growth around the country stood at 0.1 per cent for September, IPD noted, stressing that the central London office and retail sectors helped boost the figures.
Phil Tily, IPD UK and Ireland managing director, commented that demand for space was "strong" in the city. "While there was mild yield compression, growth was predominantly off the back of the continuing rental value growth, which is encouraging given the levels of uncertainty in the wider economy," he added. Property investors may also be interested in Mr Tily's assertion that the industrial sector saw capital values move up slightly for the first time in five months, with much of this growth centred on London and the south-east.
Knight Frank recently revealed that many of the capital's prime retail locations are sought after among international retailers and investors alike, with the strong demand for space helping drive rents higher in locations such as Oxford Street, Regent Street and Covent Garden.
- Tuesday 18 October 2011