Recovery of Commercial Property Values Slows – British Land
According to the latest report made by the 2nd largest UK property investment trust, British Land, commercial property values in the country have seen a slower pace of growth in the second quarter of 2010.
The organization revealed that the overall value of its business property units (shopping and office centers) grew only by 1.4%, which compares to 7.5% and 8.2% in the previous two quarters.
Chief Executive Officer at British Land, Mr. Grigg, claims that the slow growth might be blamed on increased risks to global economy, which were seen in the past months. He also thinks that the retail environment in the near future is to be tough as consumer spending is not expected to increase any time soon.
Let us remind that average prices on commercial property in the UK grew by a mere 1.8% in Q2 2010. This compares to 3.9% in Q1 2010, according to the report published by Investment Property Databank. Commenting on the IPD findings, its research director, Mr. Frodsham, says that the rapid recovery of UK business property sector seems to be over.