Commercial development investments continue to see growth in the month of March, according to a major property analysis company.
Commercial development capital growth increased by 1.3 per cent in March, according to leading property analysis company Investment Property Databank (IPD).
This means that the annual capital growth rate has now reached 7.6 per cent, the highest it has been since June 2007, the month before the credit crunch began, IPD claims.
Last month's growth means that the first quarter of 2010 accounts for more than half of this annual increase, with the growth rate rising 3.9 per cent since January.
The IPD figures also reveal that office rentals had a particularly strong month, although
property investment companies should be aware that overall the rental sector saw marginally negative growth.
"Going forwards, the strength of the occupier market and stability of the wider economy, as we approach a possible change in government, are crucial components for a continued market recovery," said Malcolm Hunt, head of UK client services at IPD, commenting on the figures.
However, despite this growth, commercial development purchases are currently being restricted by a lack of property supply, real estate adviser CB Richard Ellis announced recently.
Posted by Tess Nelson.
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