| 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: Jun 18, 2014 - 11:07 AM

UK commercial property values rose by 1.1% in May
By Finfacts Team
Jun 18, 2014 - 8:20 AM

Email this article
 Printer friendly page

Commercial property values in the UK rose by 1.1% in May, a further increase on the 0.8% growth seen in April, marking the highest monthly increase of 2014 to date.

According to the IPD UK Monthly Property Index, values have now risen by 8.5% over 13 months of consecutive growth, although they still have some way to go before reaching the peak levels of 2007.

UK commercial real estate returned 1.6% for the month, with income return standing at 0.5%. Comparatively, bonds returned 0.9% and equities 3.2% (JP Morgan 7-10 yr/MSCI UK).

Industrials reclaimed the leading sector spot, returning 1.8% in May 2014, compared with 1.7% for offices.

Despite an increased return of 1.4% compared to 1.0% in April, retail continued to lag behind other sectors continuing a trend that has existed since the start of the recovery in May 2013.

However, capital values for retail still continued to grow, by 0.9% in May, although this was behind the 1.2% growth delivered by industrials and 1.3% by offices.

From a regional perspective, IPD says outer South East offices was the strongest performing market, returning 2.2% in May, compared with 1.8% in central London. This represents a return to the trend of recent months with offices in the South East outperforming the capital.

Central London remains strong, with rental values rising by 1.3% within the office sector, compared with 0.7% for the rest of London and 0.7% for the UK office market as a whole.

Retail rents grew across the UK in May, with standard shops in central London and the South East rising by 0.7% and 0.1% respectively. Shops in the rest of the UK and retail parks experienced some growth.

Investor demand for UK property remained strong in May, with yields compressing across the country. The average equivalent yield of 6.9% at the end of May remains attractive for income-focused investors, compared to the pricing of other alternative asset classes.

Offices in the outer South East saw the most favourable yield adjustments, adding 2.0% to capital values, with retail units in central London witnessing a 1.8% yield impact on values reflecting continued strengthening of investor demand.

Phil Tily, executive director & head of UK and Ireland, IPD, said: "We have now seen 13 consecutive months of capital value growth for the UK market as a whole, evidence that the UK continues to be very attractive to investors."

The IPD UK Monthly Property Index measures ungeared total returns to directly held standing property investments from one open market valuation to the next. The index tracks performance of 3,397 property investments, with a total capital value of £36.6 billion as at April 2014.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Irish residential rents rise 9% as students face tight market conditions
Irish construction activity growth eased in July
Irish residential property prices fell in Dublin in June
Irish mortgage approvals growth fell sharply in April 2015
Irish land prices among highest in world; Noonan tax cut boosts Dublin prices
AIB cuts Irish variable mortgage rates
Dublin residential property prices rose by 1.1% in March
Global property bubble: Dublin tops 2014 global returns at 44.7%
New Irish housing units in 2015 forecast at only 10,000
Ireland: Dublin house prices up 21% in year to February 2015 after price decline in month
Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
Irish residential property prices fell 1.4% nationwide in January
Irish House Rents: Supply tightens in Dublin's commuter counties in Q 42014
Irish commercial property returns in 2014 among highest in world
Irish Housing: "Unique" demographics to boost demand; Shortages to rise
Irish mortgage approvals in 2014 at 36-year low; Exceed paid loans
Irish commercial property investment in 2014 was 25% above bubble peak in 2006
Irish construction continues to rise from very low base
Irish house asking prices fell back slightly in fourth quarter of 2014
Price/Earnings multiple for Dublin houses is double 1993 level
Residential property rents up almost 10% in Dublin in past year
Irish Government and vested interests lobby for easing of Central Bank's mortgage rules
Ireland tops global property price rankings six years after bust
Number of Irish mortgages paid in 2014 at 1974/75 level - a 40 year-low
Irish construction PMI survey confidence measure highest since 2000
Irish mortgage arrears decline; 38,463 BTL accounts in arrears
Irish Housing: Renting provides less security than ownership, unpredictable rents
Ireland: NAMA to redeem €1bn of senior bonds; Fund Boland’s Mill site development
Ireland: 35,000 social housing units by 2020 achievable; Rental market possibly not
Dublin house prices up 24.1% in year to October 2014
Irish home ownership to fall due to affordability
'Tara Collection' of office buildings on sale in Dublin for €263.8m
Irish Housing Rents 2014: Dublin just 10% short of 2007 bubble peak
Irish Economy: Residential mortgage approvals in 2014 as low as in 1977
Irish Construction: Fastest rise in new business for decade - not level of activity
Biggest US individual landowner responds to tax breaks in Ireland and UK
Irish commercial property annual return to September 2014 at 36.6% - income at global high
NAMA expects surplus of less than €500m - it's not a profit; 88.5% sales to US investors
NAMA selling 588 Dublin apartments - name withheld in announcement