Commercial property values plateau amid continued economic uncertainty

COMMERCIAL property values rose marginally last month, doing little to assuage fears that the market’s 13-month rally has lost steam and may return to negative growth, research suggested yesterday.

Investment Property Databank (IPD) said in its monthly UK index that commercial property capital values have gained 14.2 per cent in the last 12 months.

They rose 0.2 per cent in September, contributing to the fifth consecutive quarter of gains.

Ian Cullen, co-founding director at IPD, said following the global financial crisis the market had pushed values back up on the basis that the correction was overshot.

“The near plateau which we now appear to have reached reflects the continuing uncertainty over property fundamentals and whether the UK economy will enter a double dip recession,” Cullen said.
Capital values of industrial properties fell 0.1 per cent in value in September.