Property investment firms have seen most of the available capital growth in the commercial property sector, it has been claimed.
Most of the available value for
commercial development assets has been captured, it has been claimed.
According to real estate advisor Cushman & Wakefield,
property investment firms may see some capital growth creep up a little, but it is likely to remain flat for some time.
This is because the UK commercial property market has recovered strongly, but of course it means that property investment in the UK market no longer offers the same value.
Commercial property prices will help to be maintained by the potential for an increase in rental income, claims Michael Rydderch, partner at Cushman & Wakefield.
"[The UK sector] is more volatile than most of the continental European markets and so it does tend to overreact either way," he explained.
According to the latest Commercial Development Activity Index from Savills, business actions in the UK sector increased by 0.6 per cent in July, compared to the minus 2.8 per cent seen in June.
Posted by Allan Flowers
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