Commercial property sector ‘has recorded 12 months of positive growth’

Posted 16/08/2010

The UK’s commercial property market has been able to record 12 consecutive months of capital growth, new research has revealed.

According to the Investment Property Databank (IPD), markets have grown by 15.5 per cent since August 2009.

Despite only recording growth of 0.2 per cent last month, this was the same increase recorded when the recovery started, the organisation said.

The last time the commercial property market was able to declare 12 months of consistent growth was June 2007.

Mark Clacy-Jones, IPD research manager, said: “The rebound to date has delivered capital appreciation at more than twice the growth rate of the final 12 months of the last property bull run, which puts into context just how far markets have recovered.”

The retail sector was found to have recovered the most since the trough with 18.6 per cent growth, while the office market rose by 13.8 per cent.

This comes after research from IPD released last month showed there was 1.9 per cent appreciation in the commercial property sector in the second quarter of 2010, which was attributed to the softening influence of yields and rents.