🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-UK commercial property price falls slow in Jan

Published 02/13/2009, 11:42 AM
Updated 02/13/2009, 11:48 AM
TTEF
-

(Adds quote, details)

LONDON, Feb 13 (Reuters) - The freefall in UK commercial property values eased off in January with a 3 percent drop, after three successive record monthly declines in the final quarter of 2008, data showed on Friday.

The data from Investment Property Databank (IPD), used as the basis for the UK's property derivatives market, showed a record 5.8 percent fall in December, with the benchmark down 27.1 percent for the whole of 2008.

The value of British commercial properties has fallen 37.4 percent since a peak in June 2007, the index showed.

January's drop was felt across all commercial property sectors, with retail, offices and industrials dropping 3.2 percent, 3 percent and 2.5 percent respectively.

Rent rates dropped 0.79 percent in January, slightly worse than in December, with offices faring the worst with a drop of 1.44 percent, while retail rents slipped 0.56 percent, IPD said.

"The pressure on yields (is) starting to relax whilst that upon rents (is) spreading clearly into many parts of the retail and office sectors," said Ian Cullen, a director of IPD.

The total return on UK commercial property, combining rental income and capital growth, was minus 2.4 percent in January, outperforming both equities and bonds which returned minus 5.83 percent and minus 3.31 percent respectively, IPD said. (Reporting by Daryl Loo; editing by Simon Jessop)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.