The Trickser

Q1 Will See Decrease in West End Commercial Space Values

Posted by admin on January 5th, 2010 — Posted in Advertising Industry, Doing Business, Real Estate Hall

According to a cautionary prediction by the chief executive of Invista, values of commercial property are set to fall in the initial few months of the New Year. This caution comes even as there are reports of increasing values in this sector of the real estate industry.

Duncan Owen, chief of Invista, which is the largest listed property fund in the UK, has warned against having high hopes following the statistics released by Investment Property Databank, which shows a 5% increase in commercial property values since August last year. Owen has said that an artificial boost has jacked up prices all over the UK. However, investment incomes will not reach expected levels, leading to a downtrend once more.

Mr Owen has clearly stated that the short stint at the end of 2009 where property prices zoomed was purely a brief phenomenon that will not sustain for long term. A lot of foreign interest has revived in the UK real estate, which is one main reason for increase in prices in this sector. Owen has said that Invista will currently sell its properties in the West End as interest continues to be shown in this area.

However, Invista will also shift attention to acquiring offices to rent London properties, where prices have not been sharply affected by the conditions. Rents are beginning to steady in this area. Agents reported up to 15% hikes in West End properties since August. In the city, a rise in capital value of property will reflect a decrease in the quarter’s yield figures.