Commercial property has risen in value for the first time in over two years, a new report suggests.
On average, UK office and retail space has fallen in value by almost half since problems came to light in the global financial system in 2007, wiping out years of growth. London’s property market has been hit the hardest, with office space expected to see a peak-to-trough decline of 60 percent by the end of the decade.
However, average property values rose 0.2 percent in July, the first positive movement since June two years ago. Whilst this modest rise does not signal a return to the property boom that helped to fuel the recession, it does suggest that the market may have reached the bottom, or be close to it. The sentiment is confirmed by increased investor interest as buyers seek to snap up bargains.