Commercial property market returns to growth

Posted 14/09/2009

The UK commercial property market has recorded its first positive capital growth in more than two years, according to a new report.

Statistics published by Investment Property Databank (IPD) have revealed that capital growth in the sector increased by 0.2 per cent in August, the first time it has done so since June 2007.

IPD states that this growth has been driven by recent recovery in average rental values and yields, as well as positive results from the industrial and retail sectors.

Ian Cullen, co-founding director at IPD, welcomed the news as a positive indicator at a time when many in the sector are looking back on the collapse of the Lehman Brothers investment bank last year.

He said: “Since that profound shock, commercial property has delivered record losses, but has at least traced a relatively stable path towards this first tiny sign of recovery.”

This comes after estate agent Savills earlier this month told the Eastern Daily Press that property purchases in the east of England’s commercial property sector have seen an upturn in recent months.