Commercial property prices in the UK have increased by 15.6 per cent over the past 13 months, a new report has found. The news highlights the strength of the market within the country, with the retail sector leading the way.
According to the August IPD UK monthly index, the 2010 year-to-date growth now stands at 6.2 per cent. The month is marked by the industrial market delivering the first sector capital depreciation since the recovery, at a negative five basis points, while retail and offices rose by 0.1 per cent and 0.2 per cent respectively.
The report adds that the retail sector has completed a 14-month rebound amounting to an 18.7 per cent rise in capital values, while the office sector has seen values rise by 13.9 per cent over the 12 months to August.
"However, calm periods are as good a time as any to reinforce the message that investors should remain vigilant of any risks within their property portfolios," Phil Tily, managing director of IPD UK, said. "It is worth remembering the property market storm which erupted two years ago."