UK Commercial Property Demonstrates Muted Growth

The latest report on British commercial property published by IPD (Investment Property Databank) last week suggests that values of business property in the country increased in September 2010. However, the growth was referred to as "muted" as it only constituted 0.2% and brought the annual change in capital growth to 14.2%.

Commenting on the findings, Mr. Cullen of Investment Property Databank said that 5 consecutive quarters of capital growth have been registered; however, now the market arrived at the near plateau. This fact, in his opinion, means that there is "the continuing uncertainty over property fundamentals" and a possibility that the UK commercial property market will live through another recession.

Let us remind that a separate report published by CBRE earlier in October showed that it was solely London commercial property that boosted the recovery of this sector in the UK.

As for other leading countries around the globe, only commercial property in France has emerged from the economic downturn, while others suffered.