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Commercial Property News
Rental growth returns for central London business property
The value of London business property rose last month, the latest UK Monthly Index from the Investment Property Databank (IPD) has revealed.
Commercial property for rent in the City and West End rose in value by 0.2% and 0.3% respectively during January, while positive capital growth eased to 1%.
According to the IPD, the recovery of office real estate prices in the capital has been boosted thanks to its "heightened sensitivity to economic sentiment", with the sector also seeing the benefits of increased activity from overseas investors, who have been drawn to the market by depreciating sterling and improved rental yields.
Head of UK client services at the IPD Malcolm Hunt noted that that this year's trend is the "mirror opposite" of the one that occurred last year, when the new year brought a notable easing after the market suffered its "worst quarterly capital depreciation on record" at the end of 2008.
The figures come after Oliver Gilmartin of the Royal Institution of Chartered Surveyors predicted that the shortage of commercial property across London could help rental prices to recover quickly.
Commercial property for rent in the City and West End rose in value by 0.2% and 0.3% respectively during January, while positive capital growth eased to 1%.
According to the IPD, the recovery of office real estate prices in the capital has been boosted thanks to its "heightened sensitivity to economic sentiment", with the sector also seeing the benefits of increased activity from overseas investors, who have been drawn to the market by depreciating sterling and improved rental yields.
Head of UK client services at the IPD Malcolm Hunt noted that that this year's trend is the "mirror opposite" of the one that occurred last year, when the new year brought a notable easing after the market suffered its "worst quarterly capital depreciation on record" at the end of 2008.
The figures come after Oliver Gilmartin of the Royal Institution of Chartered Surveyors predicted that the shortage of commercial property across London could help rental prices to recover quickly.
Mon, 15th Feb 2010