Record rise in commercial property values

Record rise in commercial property values


The latest figures from consultants CB Richard Ellis’ Monthly Index have shown that commercial property values in Britain rose sharply in November, making it the fifth consecutive monthly increase. 

The 2.7% increase in value is the largest monthly gain since records began nine years ago.


According to the consultants, the growth was led by retail warehouses and shopping centres, which were up 4% and 3.9% respectively.


David Wylie, head of economics and forecasting at CBRE said that the current investor demand would lead to strong returns next year, but warned that an increase in supply and a weak rental growth outlook could slow down recovery in the troubled sector.


Commercial property values have been creeping up since July, when they had slumped by 44% from the height of the property bubbles in summer 2007.

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