UK Property Returns Reduce In 2012

The IPD UK Quarterly Property Index has confirmed that commercial values fell by 3.1% for the year 2012 whilst income returns held up at 6%. It is believed that the gap between returns for Central London buildings and the rest of the UK continues to widen with values in Central London rising by some 5% but falling by nearly 6% outside of the capital. The continuing strong demand from overseas investors for Central London investments shows no sign of abating. For many overseas buyers, London is a safe haven for their cash and much of this is directed towards prime offices and shops in either the core City or prime Mayfair and St James’s markets.

David Mundy, head of Investment at Mellersh & Harding commented that "we have been successfully involved in a number of prime Central London office deals in the last few months and we have become well aware of the sheer depth of demand from the overseas buyers." Back