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No halt to commercial property recovery next year, say experts

Leading forecasters expect the UK commercial property recovery to continue into next year.

The IPD index recorded a 2.4% increase in values in November, the biggest monthly increase in 15 years. Capital growth in the year to date was minus 8.4% but total returns stood at minus 1.4% and were heading for a positive end to the year, the Financial Times reports.

The newspaper says the consensus view is broadly that capital values will plateau, with total returns settling at 6-10 per cent for the next two years although there is a range of other opinions.

Predictions are included in the article from Schroders, JPMorgan, CB Richard Ellis, King Sturge and Savills.

30/12/09 Financial Times 16

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