Commercial property market grows | 16 June 2011
Reports suggest the commercial property market is growing, albeit slowly.
An independent study has shown how values of commercial property grew by 0.1 per cent in May, exactly the same figure recorded in April. The total is a 2.3 per cent growth on last year’s figures and a 17.3 per cent growth since the end of 2009.
The total rental growth for commercial properties also saw a small rise, growing by just 0.04 per cent. Specifically, office rents registered growth of 0.24 per cent but retail and industrial rents saw a decline, registering a contraction 0.05 per cent and 0.08 per cent respectively.
The rising property values has further promoted commercial property as one of the most viable investment tools available, with many investors using property management software to manage their growing portfolios.
Speaking to Reuters of the findings, commercial property expert Phil Tily explained: “This [growth in capital values] was again off the back of a strong performance by properties in central London, which saw a steady increase in capital appreciation and improved level of rental value growth.”
Adding, Tily told propertyweek.com: “Rental value growth rose fractionally, back into positive territory for the first time since February, albeit just four basis points, meaning capital growth was still reliant on a further reduction in yields.”
Written by David Howells on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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