UK Commercial Property Prices Rise by 7%
The latest report from Investment Property Databank Ltd., for December 2010 suggests that prices on UK commercial property rose by 6.9% last year, marking the first increase in the past 4 years.
The rise is even more positive as it follows a 5.6% drop in commercial property values registered in 2009.
The month-on-month growth alone amounted to 0.3% in December 2010.
The increase in prices is mainly driven by London property, offices in particular. However, the values of commercial objects outside London might suffer significantly in the coming months as a result of budget cuts, warns IPD.
Mr. Tilly, the organisation's management director for UK and Ireland, said that "a clear divide has returned to the U.K. property market - London versus the rest of the U.K. - which will be exacerbated as the impacts of the government’s budget cuts take hold during 2011."
The report of the IPD for December 2010 was based on the analysis of 3,648 properties worth £33.2 billion and published on Monday, January 17th.