Commercial property growth slows to 0.1%

Posted 13/09/2010

Commercial property values posted a rise of just 0.1 per cent in August, according to new data from the Investment Property Databank (IPD).

The organisation’s latest index suggests recovery in the market has slowed significantly, as it represents the weakest monthly growth rate in more than six years.

Values rose by 0.2 per cent in July and the index has so far gained 15.6 per cent since last August.

Commenting on the new figures, managing director of IPD Phil Tily pointed out the “property market storm” that sent prices tumbling was just two years ago.

“Markets have – for now at least – plateaued as rents and yields moved fractionally in August following the trend of recent months,” he commented.

According to Reuters, several commercial property deal-makers recently told the news agency they are expecting a lack of money-making opportunities to endure for three years in the UK.

However, manager of the Isis Property trust Ian McBryde told Fund Strategy magazine the fall in bond yields has made commercial property attractive to investors.