Rental values in Central London’s office space market grew by 1.3 per cent in May, compared to a UK average of just 0.7 per cent.
According to the latest UK Monthly Property Index, which is published by industry analysts at IPD, positive movement was also seen in the capital’s retail market, where rental values rose by 0.7 per cent. This, again, was higher than the UK average, property-magazine.eu reports.
Across the UK as a whole, commercial property values increased by 1.1 per cent for the month, marking the best growth month of 2014 so far. In April, the figure rose by just 0.8 per cent.
The company’s head of UK and Ireland, Phil Tily, was quoted by egi.co.uk as saying: “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. ”
IPD’s Property Index tracks the ongoing performance of more than 3,300 property investments. As of April 2014, the combined capital value of this selection stood at approximately £36.6 billion.
Commercial real estate is also proving a popular as an investment choice. Yields compressed across the country in May, with an average yield of 6.9 per cent ensuring property remains attractive compared to other asset classes.
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