Investor demand fuels growth in commercial property market
Published on
2010-12-07T00:00:00
The UK commercial property market enjoyed capital growth of 0.3
per cent last month as a result of continued investor demand.
CB Richard Ellis' latest UK monthly index shows a marginal
increase on January's 0.7 per cent total return to 0.8 per cent as
property yields continue to move downwards.
Commercial property to let in London
remained the strongest performing sub-sector, outperforming all
other areas during the recovery of the property market.
Nick Parker, senior analyst at CBRE, said: "With both the retail
and office sectors showing improved results, and industrial the
only sector which saw slightly weaker returns, February's property
market performance in the UK was generally more encouraging than
what was seen last month.
"Perhaps the most positive story is the resilience being shown
in the retail sector, with all three sub-sectors producing stronger
than anticipated returns, despite concerns surrounding the strength
of the consumer economy."
The property market growth in Central London is highlighted by
news of a new development of office space to let in Holborn, funded
by Hines' European Development Fund II.
Hines has worked on numerous commercial properties in London
following the recent development of office space in Mayfair and the
City.
It is an exciting time for businesses to relocate or extend
their business presence across London. Still the most visited city
in the world, London remains the global hub of business and
commerce and is preparing to host the 2012 Summer Olympics that is
promising to regenerate significant areas of the capital.