Britain's out-of-town shopping centres have jumped in value over the last three months thanks growing appetite from investors and retailers opening new shops.
Research from estate agency CBRE shows that capital values increased by six per cent in the third quarter, marking the second steepest rise since 2000. That contrasted with a 3.8 per cent growth in property values for in-town shopping centres.
Natasha Patel, an associate director at CBRE Research, said: “On the whole, we saw fairly modest capital value growth in the third quarter, but both rents and capital values in out-of-town shopping centres have grown remarkably.”
Rents were up 2.1 per cent across out of out of town malls, which Patel said was largely due to demand from retailers focusing on placing stores in key shopping centres to strengthen their brand.
Overall shopping centre values rose by 4.5 per cent while rental growth stood at 1.6 per cent in the third quarter. CBRE said their popularity seems to have come at the expense of the high street, with property values for the rest of the UK growing by just 2.2 per cent. This was buoyed by central London where values rose by 5.5 per cent.