Commercial mortgage news: Property values increase for 7th quarter

10 May 2011

Written by Jenny Barrett

People taking out commercial mortgages may be pleased to hear that property values in the industry have increased by 19.9 per cent in the last two years after falling 42.2 per cent between 2007 and 2009.

This is according to IPD statistics released yesterday (May 9th), which showed that all sectors gained positive returns in the first three months of the year.

"While in the overall context of the recovery period this is a relatively sedated pace of growth, it nevertheless marks the seventh consecutive quarter of improving value," UK and Ireland managing director of the company Phil Tily said.

City offices were performing the best out of the sector, with market returns of 4.5 per cent, while retail warehouses were also at the forefront of the recovery, the figures showed.

The latest UK Commercial Market Survey from the Royal Institution of Chartered Surveyors recently showed that demand for office space is rising across the UK, particularly in London.

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