UK commercial property market sees largest growth since May 2013
The commercial property market in the UK has seen its biggest increase since the economic recovery began in May 2013.
Data from the Investment Property Databank (IPD) revealed that commercial property values in the UK rose by 1.6% in June, which is a further improvement from the 1.1% growth seen in May.
This IPD update also shows that values have risen by 10.1% in last 14 months and also points to 14 months of consecutive growth. Values are still well below the levels of 2007, but the continuous growth is positive news nonetheless.
Leading the way in terms of growth are the office and industrial markets, with both returning 2.5% in June 2014. Retail continuined its trend of lagging behind, with returns at 1.6%.
Giving his thoughts on the news, Executive Director & and Head of UK and Ireland at IDP, Phil Tilyy said: “June 2014 was a very good month for investors in UK commercial real estate, with returns matching their highest levels of the current recovery. Encouragingly, performance is being bolstered by strengthening occupier markets, while yields remain competitive with other asset classes.”
To read more insight from NovaLoca, please go to our blog and find out which areas of the country are receiving £6bn worth of investment from the government, or our piece on the Old Oak Common Regeneration project.
