The turnaround in investor demand over the last six months has put the performance of commercial property over the last year back into positive territory. This is something that few would have expected only a few months ago.
The Investment Property Databank (IPD) has pointed to a 4.5% capital value increase since June this year, following a 45% fall over two years. But this understates the sharp rise in value of prime central London office assets. Recent interim reports from developers such as British Land and Great Portland Estates have reflected the positive tone struck by IPD. This has prompted a number of major property companies to announce that they plan to spend opportunistically in core sectors, particularly central London offices.