U.K. Commercial Property Values Rise for a Fifth MonthNeil Callanan
U.K. commercial real estate values rose for the fifth straight month in September, posting the biggest gain since April 2010, Investment Property Databank Ltd. said.
The average value of stores, offices and industrial properties climbed 0.6 percent from a month earlier, London-based IPD said in a statement today. Total return, which combines changes in real estate values and rental income, was 1.2 percent.
The International Monetary Fund raised its forecasts for the U.K. economy by more than for any other Group of Seven nation on Oct. 8 as the economic recovery gathers pace. Growth is spreading beyond London because of improving consumer and business sentiment, according to a survey published today by Lloyds Banking Group Plc. The improvement bolsters demand for stores, warehouses and office buildings.
“The property sector is back into full swing after the summer,” Phil Tily, a managing director at IPD, said in the statement. “An ongoing improvement in investor sentiment, prompting further yield compression has helped the market deliver a predominantly capital based return this month.”
Office buildings had a 1.0 percent gain in September and warehouse values climbed 0.7 percent, according to IPD. The average value of retail properties rose by 0.3 percent. Income-producing commercial properties lost value for 17 consecutive months through March and were unchanged in April.