| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Property Last Updated: Jan 19, 2012 - 8:34 AM

Total return for UK commercial property in 2011 was 8.1%
By Finfacts Team
Jan 19, 2012 - 8:31 AM

Email this article
 Printer friendly page

Total return for commercial property in 2011 was 8.1%, according to the IPD UK Monthly Index. Capital growth slowed to 1.2%, while income return amounted to 6.8%.

Capital values fell for the second consecutive month in December, by -0.1%, making growth just negative overall for the last quarter of 2011. Total return, which stood at 0.5% for all property in December, was down in all three market sectors.

Phil Tily, managing director of the UK and Ireland, said: “While growth for the year remained positive, the outlook for 2012 is less than ideal. During  the last three months of the year, as the Euro situation worsened and the threat of  recession increased, returns tailed off considerably. The retail sector was the hardest hit in Q4, seeing values fall by -0.3%, whilst industrial values fell by -0.2%. Office growth remained positive, at 0.2%, but even this represented a considerable slowdown.

“Hopes were high at the beginning of 2011 - - sectors such as shopping centres and  City offices were expected to perform well - and by mid-year talk was about a recovery in the secondary sector. However, the worsening situation in 2011 has seen expectations cut, and 2012 may be a year of re-evaluation in regards to pricing levels, and a heavy concentration on income.”

City office worries

For the first time in 27 months, City offices saw their values fall, by -0.1%. After  losing about 50% of their value during the 2007-2009 period, they recovered  approximately 35% until November 2011.

“Investor demand has remained strong over the last year, but yields had a negative impact in November/December, as investor sentiment was hit by the overall uncertainty in the market and reduced prospects in the financial services sector. Rental growth, though still positive at 0.3%, has been disappointing compared to expectations.” continued Tily.

“In the West End, where the market is a lot tighter, and where supply is more restricted, capital growth remained strong in December, at 0.7%.”

Retail falls

“Challenges in the occupier market have been noticeable in the retail sector, where rental values continued to fall, -0.1% for December, and -0.9% for the year. This, with a further softening of yields, has seen values fall -0.2% in December,” added Tily.

The much talked about regional variations in performance are especially evident amongst shopping centres, where December returns remained positive in London and the South, at 0.4%, but with a -0.5% return in the rest of the UK.

Outside of Central London, standard retail units across the UK recorded either flat or  negative value movement for the month. The hardest hit areas, the South West, Wales and Yorkshire and Humberside, saw values fall by -0.7%, -0.7% and -1.0% respectively

Download report

Check out our new subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

It's a simple fact that in the prevailing economic climate, the provision of high quality content cannot be sustained through advertising alone. 

Business executives who put a premium on time and value high quality information, should use our service.

Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Irish and UK commercial property markets strengthen in 2014
Irish construction PMI highest since 2006 - number of firms polled withheld
Irish Residential Property Prices: Government wants higher prices
Switzerland reaches for the skies – despite protests
NAMA sells complete Northern Ireland loan portfolio that had par of £4.5bn
Irish House Prices 2014: Daft.ie says prices ex-Dublin up in Q1; MyHome.ie says prices slightly fell
Irish home mortgage approvals in 2014 at 42-year low
Irish House Prices 2014: National prices up 8.1% in year to February
Irish House Rents: Dublin rents up 2.1% in Q4 2013; Down 0.9% ex-Dublin
Irish construction PMI rises from low base; Number of firms polled low
Irish mortgages in arrears 360 days+ at 60,422 - 7.9% of total accounts
Irish House Prices 2014: National annual rise at 6.3% in January; Dublin prices fell to 13.6% increase
Number of Irish home mortgages issued in 2013 fell to a 40-year low
Dublin house sales at 10,000 in 2013; 246 sales at €1m+; Lowest at €6k
London office rents remain world's highest; Dublin at 25th of 67 locations
Irish commercial property returns rose to 12.7% in 2013
Irish House Rents: Up 7.1% in Q4 2013 year-on-year nationally; Dublin rise at 11.2%
Irish Economy 2014: Construction PMI up sharply; Caution on small sample
Irish House Prices 2013: Dublin prices rose 15.7% in year; National prices up 6.4%
Dublin second-hand house prices rose by 17.7% in 2013
UK commercial property returned 10.9% in 2013
Ireland is one of 'hottest' hotspots for European commercial property deals
Irish construction activity rises again in December
Irish industrial property market back at 2007 levels; Blackstone and Google in Dublin office deals
Irish House Prices: Asking prices in Dublin commuter counties stabilised in 2013
Irish House Prices 2014: Dublin main challenge as asking price gulf surges to 28%
Irish House Rents: Average rent in Dublin in Q3 2013 was €1,041
Irish construction PMI in sharp rise; Firm sample likely small
Irish mortgage arrears less than 90 days fall and over rise
Irish House Prices up 15% in Dublin; Mortgages issued at 1974 level
UK taxpayers providing £5bn a year subsidy to buy-to-let landlords
Irish ghost estates to be demolished; Arrears activist group agree pilot scheme with AIB
Irish mortgage affordability index shows rise for Dublin first time buyers
Commercial property outlook improves in Ireland and Spain
Where have all the empty Irish houses gone?
Irish mortgage drawdowns rose in Q3 2013 but remain at 39-year low
Irish House Rents: Nationwide year-on-year rise at 4.8% in Q3 2013
Irish construction PMI in sharp rise; Small sample and no jobs added
75% of 83,000 Irish residential mortgages in arrears of 90 days+ not restructured
Irish home mortgage approvals in September 2013 at 39-year low