Commercial property valuations ‘more consistent’

Posted on Posted in INDUSTRY NEWS

Commercial property valuations are now more consistent, a report by the Investment Property Databank (IPD) has shown.

Its research found capital growth estimations were more consistent and have added credibility to current market valuations.

The IPD revealed the valuation industry "has become more concentrated" and the top five valuers in its index now covered 80 per cent of the market.

It found rental valuations showed a greater difference of opinion. Rupert Johnson, head of valuations at Knight Frank, told Reuters the key to maintaining accuracy was "communication between valuers and their respective firms’ capital markets, leasing and research teams".

The IPD also revealed commercial property values have fallen by 17 per cent in the last 12 months.

Lower commercial property prices are encouraging overseas investment in offices in London.

Recently, an offer of £400 million was made on the Willis Building from the Kuwait-based backers of investment company, St Martins Property, it was reported.

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