UK commercial property market posts marginal growth | 17 June 2013
May saw the first rise in UK commercial property values for 18 months, bloomberg.com reports.
According to the latest ‘UK Monthly Property Index’ from Investment Property Databank (IPD), the average value of commercial property (defined for this study as stores, offices and warehouses) rose by 0.01 per cent month on month.
However, looking at the figures on total return basis (which combines changes in real estate value and rental income) puts the growth at closer to 0.6 per cent.
Specifically, increases in office value were thought to be among the biggest growth drivers; accounting for a 0.2 per cent total growth alone between April and May. Warehouse values, meanwhile, were largely unchanged over the same period.
On a geographical basis, the IPD research echoed others published recently by claiming that whilst London was still by far the biggest driver of growth, an improvement in the regions has made the figures much more level than they otherwise have been in recent months.
Commenting on the results, a managing director at IPD, Phil Tily, told sharecast.com: “It may seem like insignificant growth, but this is an important milestone for the UK property market. After the double-dip recession and a fall in values of over 37 per cent, UK property has finally, painstakingly, clawed itself back to growth.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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