Signs of levelling off in the value of commercial properties in London and elsewhere have been seen over recent months, it has been claimed.
Figures released by the Investment Property Databank’s UK Monthly Index have shown that there was an easing in commercial property value falls during January, suggesting that the market could be seeing the first signs of recovery after a difficult 2008.
Furthermore, the research said total returns on commercial properties were far better in January than they had been during 2008, with signs of renewed confidence in the sector.
Commercial property in London and the rest of the UK outperformed both equities and bonds in January, demonstrating that the UK commercial property market remains an important place for investors to put their money during the recession.
Ian Cullen, co-founding director at IPD, explained that the commercial property market had been helped by a relaxation in the pressure on yields.
Commercial property in London has been given a number of boosts over recent weeks, with several different plans unveiled to boost the amount of commercial property available in the city.
For example, plans have been given the go-ahead for a major overhaul of Victoria station that will provide a range of new shop and office space.