The UK commercial property market has shown an unanticipated recovery in recent months, with capital values rising an average of 14 percent since last July. However, this overall figure belies a diversity of behaviour in the market and has led some analysts to believe that the growth is only temporary, with a stalling recovery in many locations.
In some areas of the country, commercial property remains at near rock-bottom prices, having hardly risen since the massive 40 percent crash of the credit crunch and recession. However, some commercial property in London – particularly prime office space – is back near the levels seen in 2007. British Land, Land Securities and Great Portland Estates have all published exceptional figures as a result in the last few days.
Whilst London’s rental growth seems sustainable due to the scarcity and growing demand, then, other areas of the country may be set for flat growth for some time.
Photo: Flickr (Jim Linwood)