British commercial property values rose 3 percent in December, the largest monthly rise since records started 23 years ago, as the market's recovery accelerated after a two-year downturn, data showed on Friday.
The fifth-consecutive monthly gain, which amounted to a compounded growth of 8.8 percent, meant the value of British commercial properties fell by 5.6 percent over the whole of last year, the Investment Property Databank (IPD) said. The recent growth was offset by a steep plunge in values in early 2009, at the height of the global financial crisis.
In recent weeks, property companies such as Land Securities , British Land, Hammerson and Great Portland have been lining up to make acquisitions, anticipating a sustained rebound in British commercial property.
Some experts have warned however that the upswing in investments and prices of UK commercial properties masks uncertainties and risks that could further hit rentals, urging caution when investing in the recovering market. The benchmark IPD data, used as the basis for UK's property derivatives market, also showed rental rates for office, retail and industrial properties, continued to weaken in December, declining by 0.4 percent on average.
Comments
Comments are closed.