London commercial property values increasing
Published on
2011-06-02T00:00:00
The value of prime commercial property in Central London is said
to have risen according to statistics from one property firm.
Knight Frank released its Prime Central London Index for May
2011, which revealed an overall increase in the value of Central
London commercial property by 1.4 per cent.
The overall increase has contributed to the annual growth rate
of 8.3 per cent, meanwhile property prices are now a third higher
than they were in March 2009 - regarded as the low point
post-recession.
Foreign investment is regarded as a significant contributor to
improving Central London commercial property values, with interest
from overseas cited by Knight Frank as an influential driver of the
market.
As it stands foreign exchange rates were also encouraging the
purchase of commercial property in London with buyers from the US
and Eurozone receiving discounts of 17 and 16 per cent
respectively.
Wealthy individuals are being increasingly urged to invest in
commercial property in the UK as part of a self-invested personal
pension (SIPP).
Steve Latto, head of pensions at Alliance Trust Savings, said:
"With the SIPP purchasing the commercial property, the owner of the
business can receive a significant capital injection which they can
use to make further contributions to their SIPP."