UK Commercial Property Values Rise by 0.1%

According to the latest report published by IPD UK, commercial property values in UK rose by just 0.1% in January 2011.

This slight increase only applied to retail and industrial properties; as for office spaces, the growth was flat.

Commenting on the gloomy figures, Mr. Tily of Investment Property Databank, said that "K commercial property market could continue to remain lacklustre over the months to come, masking a polarisation of market performance by geography and asset yield profile."

The report also showed that annual growth in capital values fell by 0.9%, from 6.9% in December 2010 to 6% in January 2011.

Income growth amounted to 0.6% in the first month of the year of 2011.

The index for January was compiled on the basis of analysis of 3,630 properties worth £33 million in total.

In the opinion of Mr. Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), commercial property in Great Britain might face significant challenges this year.