UK commercial property values rise for 5th consecutive month

The latest figures from CB Richard Ellis’ Monthly Index have revealed Britain’s commercial property values have risen for the 5th month in a row.

In fact, the 2.7% increase for November is the highest monthly increase since records began 9 years ago. The consultants have said retail warehouses and shopping centres were behind the growth, which grew at 4% and 3.9% respectively. Commercial property values have been rising since July, when they slumped by 44% from the peak of the property bubble in summer 2007.

New research out this week also shows renewed interest in Central Office space London serviced officesLondon office space. Interest in London commercial property has now risen by a fifth on a month-to-month basis. Nearly 3.5 million square feet of office space were under offer by the end of November – nearly double the quantity at the beginning of 2009.

Experts predict that if the decrease in available space is sustainable, rents will begin to rise. Landlords will be able to charge more as the amount of free office space continues to dwindle. In the last  few months, the London commercial property market has seen a surge in investor activity which is the latest sign the market could begin to stabilise in early 2010.

Despite this renewed confidence, some experts warn the commercial property market across the whole Office space UK serviced offices UK won’t return to growth for another year. They predict both uk capital investment and rental values will decline in the next 12 months.

UKCIG Property News, December 2009