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Commercial Property Investment February 2012
According to the latest data from CB Richard Ellis, commercial property values in the UK fell slightly in February over January, but experts believe it is more likely a short-term blip rather than being indicative of a long term downward trend.
According to the firm's February index returns in February totalled just 0.1%, with capital values falling by 0.4% over the month and values down across all market sub-sectors. London offices bucked the trend with returns totalling 0.5%. However, declines across all sectors everywhere else were sufficient to drag down the overall result.
Likewise in the occupier markets; All property rents remained flat in February, but this was because of a stronger performance in London cancelled out declines across the rest of the UK.
Nick Parker, senior analyst of Economics & Forecasting at CBRE said: "A general cooling in investor sentiment has been evident for the past nine months, but until recently, valuations haven’t been adversely affected to any great extent. Now, the power has shifted back to the buyers, but with this shift comes great opportunities for those that are able to act."
Parker went on to say that foreign investors, who are less constrained by a tight domestic debt markets are continuing to target and focus on the UK - especially London. In fact, a third of investors surveyed in the latest CBRE Real Estate Investor Intentions report said that London was the most attractive real estate investment market in Europe for 2012.
In other news Savills have predicted a 3.9% growth in London hotel values this year. The firm reported transactions in the sector worth 1.5 billion last year, a 0.8% increase on 2010, which is a much better performance than the 7.1% drop in All property transactions.
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*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.