Commercial mortgage holders 'seeing rising incomes'

09 September 2010

Written by Gavin Elley

Commercial mortgage holders in the central London office market saw increases in their earnings in August, it has been reported.

CB Richard Ellis' latest UK Monthly Index showed the assets were the best performing among all property sub-sectors, with a total return of one per cent and capital growth of 0.6 per cent.

Overall, earnings from real estate investment continued to expand but at a slower pace compared with July.

In August, total return on all property grew by 0.8 per cent - a drop from the 0.9 per cent increase recorded the previous month.

Head of UK economics and forecasting at the firm David Wylie commented: "This month's returns confirm the growing mood of reflection among investors ... [who] are looking for more compelling signs of recovery in occupier markets before committing further to the market."

However, he noted central London office and retail sub-sectors were the exception to this trend.

This comes after Simon Read wrote in the Independent that the commercial property market was looking set to recover, with investors returning to real estate as returns on the assets grow.

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