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Property investors urged not to ‘worry about commercial property values’

23rd May 2011
UK property investors are being urged not to worry about the slight decline in commercial property values in recent months by industry experts.

Investors looking to secure profits on commercial property assets should not be deterred making investments according to Mat Oakley, director of commercial research at Savills.

Mr Oakley revealed there has been growth for the past 12 months across London’s commercial property portfolio, but there has been slim growth elsewhere in the United Kingdom.

“Until the other major non-London markets begin to recover, rental growth on this national all-property level is going to be relatively volatile,” added Oakley.

The Investment Property Databank revealed its latest index in March which showed a slight decline of assets in the rental sector by 0.1 per cent. The result of this reduced growth was attributed to Central London along with a decline in demand for office space.

Nevertheless, over the last 20 months since capital growth has become positive, values have risen 17 per cent and capital growth in all sectors in March was 0.3 per cent.

Phil Tily, managing director for Investment Property Databank UK and Ireland, said: “Results are again showing mixed signals, with slightly improving capital growth entirely dependent on investor sentiment, while positions for rental values have weakened.”

At we have a great deal of commercial space to let in London and many other influential commercial regions across the UK. We aim to connect businesses to cost-effective and reliable commercial property owners across the country with a diverse selection of properties that provides SMEs and start-ups with the tools to perform.

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