UK Commercial Property Values Fell in First Half of 2012

Posted on 29 July, 2012 by Jodee Redmond

The numbers for UK commercial property values are in, and the market is down by 2.0 per cent in the first six months of 2012. Austerity measures in the country and in Europe were the reason for the negative growth. The lone bright spot on the property radar was the office sector.

The office market in Central London grew by 1.8 per cent, and the retail sector was up by 2 per cent during the same period. Offices and high street retailers located outside of the South East are down 4.8 per cent and 5.2 per cent, respectively. Regional shopping centre values have fallen by 6.3 per cent in the first six months of the year.

Rents were flat in June. Over the past six months, the average rent fell by 0.1 per cent for all property levels. The retail sector was especially hard hit, and rents fell by a further 0.4 per cent across all types of establishments.

Even though the latest news can be interpreted as discouraging, commercial properties are still a viable investment option when considered in light of other products, which are much more volatile, such as equities. As long as the property is occupied by a tenant, it is producing an income for the owner. This fact makes investing in commercial property an attractive choice, even during times when the market is flat or negative for property values.

Investors will need to exercise good judgment when choosing a property to buy, but they would need to consider any opportunity carefully before opening their wallet. Any property purchase would have to be made with the view that the property will be held over the long term, since it may be some time before property values bounce back to pre-recession levels throughout the UK.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants