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Commercial Property News
UK commercial property values up 3.3% in December - greatest monthly increase ever in CBRE Index
UK commercial property values rose 3.3% in December, their largest monthly gain since records began nine years ago and the sixth consecutive monthly hike, the latest CB Richard Ellis Monthly Index found.
Commercial property values have risen steadily since July 2009, when they were down 44% from their mid-2007 peak.
The December rises in capital values were led by retail warehouses, up 6.1%, on the back of intense investment demand, CBRE said today, adding that end-2009 retail warehouse prices were up 6.5% year-on-year.
The values of central London offices also continued their monthly run-up, gaining 3.7% in December, although on an annual basis they had fallen 2.1%.
Rental values across all commercial property types kept softening, falling 0.3% in December. On an annual basis, rental values at the end of 2009 were down 8.9% compared with the end of 2008.
Central London office rental values in December 2009 were down 21.5% year-on-year.
CBRE's head of UK research, Peter Damesick, said strong demand from offshore investors and renewed flows of money into UK property funds were the key drivers of growth, with limited availability of good quality assets to buy.
"Increased capital flows into property look likely in the near term, giving further momentum to the market in the early part of 2010," Damesick said in a statement.
"The sharply accelerating returns and value increases seen over the past few months inversely mirror the worst of the downturn seen this time last year."
Commercial property values have risen steadily since July 2009, when they were down 44% from their mid-2007 peak.
The December rises in capital values were led by retail warehouses, up 6.1%, on the back of intense investment demand, CBRE said today, adding that end-2009 retail warehouse prices were up 6.5% year-on-year.
The values of central London offices also continued their monthly run-up, gaining 3.7% in December, although on an annual basis they had fallen 2.1%.
Rental values across all commercial property types kept softening, falling 0.3% in December. On an annual basis, rental values at the end of 2009 were down 8.9% compared with the end of 2008.
Central London office rental values in December 2009 were down 21.5% year-on-year.
CBRE's head of UK research, Peter Damesick, said strong demand from offshore investors and renewed flows of money into UK property funds were the key drivers of growth, with limited availability of good quality assets to buy.
"Increased capital flows into property look likely in the near term, giving further momentum to the market in the early part of 2010," Damesick said in a statement.
"The sharply accelerating returns and value increases seen over the past few months inversely mirror the worst of the downturn seen this time last year."
Fri, 8th Jan 2010