London office space is one of the few areas of the commercial property industry in the UK to have experienced capital growth during July compared to June. According to the latest figures in the Investment Property Databank (IPD) UK Monthly Index, it was this appreciation in values that boosted the UK's office sector as a whole, making it the only market where prices rose rather than fell.
Office space in the city has seen capital values increase by 17.6 per cent over the past 24 months, demonstrating a consistent pattern of growth. Phil Tily, UK and Ireland managing director at IPD, explained what is driving this performance. "While yields on government bonds remain low and with further uncertainty in the equities markets, property continues to hold its own against other asset classes," he said.
A report published earlier this month by CB Richard Ellis supported these findings, noting that the London office market "maintained positive momentum" during July, which in turn helped boost the overall sector in the UK. The London Midtown area was highlighted as one that performed particularly well during this period.