The UK saw the largest increase in real estate price growth across Europe, with a 26% increase in the 12 months to the end of Q1 2015, according to a DTZ report out today.
In the same period, prices for all European commercial real estate grew by 16%, with 4.1% quarter-on-quarter growth in Q1 2015.
Alongside the UK’s strong annual growth, prices in Q1 were 5% higher quarter-on-quarter. The strength in prices follows record investment in the UK over the past 12 months and the strongest Q1 on record.
Markets outside London show the largest price movements and the strongest increase in investment activity. Prices for all property outside London rose 27% year-on-year. London’s annual price growth slowed to 21% in Q1 2015, compared with 23% in the previous quarter. Quarter-on-quarter growth slowed to just 0.2% in Q1 2015.
DTZ director Nigel Almond said: “Despite the rapid increases we are seeing regionally, the index for the UK excluding London is still more than 20% below the peak of the market in 2007. That indicates that there remains potential for further value recovery.
