UK commercial property sees strongest monthly increase

Office buildings1UK commercial property marked its strongest monthly increase in June since the recovery began in May 2013.

The IPD UK Monthly Property Index saw commercial property values in the UK rise by 1.6% in June. This was a further increase on the 1.1% growth seen in May.

IPD says values have risen by 10.1% over 14 months of consecutive growth, although they are still well below the peak levels of 2007.
UK commercial real estate returned 2.1% for the month, with income return standing at 0.5%.

This compared favourably with the negative performance of other asset classes in June: bonds returning -0.7% and equities -1.3%.

Offices and industrials shared the leading sector spot, each returning 2.5% in June 2014, with retails trailing on 1.6%.

Although the retail return increased compared to 1.4% in May, retail has lagged behind the other sectors continually since the start of the capital value recovery in May 2013.

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