The UK's commercial property market continues its slowdown, with growth rates negligible.
Property investment firms have seen the value of their
commercial development assets rise again for the 12th month in a row, according to the latest research.
However, the rate of increase has almost ground to a halt, with the market returning just 0.2 per cent capital growth in July, the Investment Property Databank (IPD) claims.
The income return for property investment firms remained stable at 0.6 per cent, resulting in a total return of 0.8 per cent.
Mark Clacy-Jones, the IPD's research manager, said that the commercial property market may look stagnant at the moment, but things change quickly in the sector.
"The rebound to date has delivered capital appreciation at more than twice the growth rate of the final 12 months of the last property bull run, which puts into context just how far markets have recovered," he said.
BNP Paribas estimates that it may take some 15 years for commercial development asset values to reach their pre-recession levels.
Posted by Tess Nelson.
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