A fourth straight quarter of growth in the Retail Property Price Index has resulted in a 17.6% year-on-year increase in average values, according to the latest IPD UK Retail Property Auction Index.
Between July and 30 September, the index rose to 104.9, up from 98.2 the previous quarter.
It means the index – which captures all major auction houses – is now above its base level for the first time since 2010 and is 20 points clear of the bottom of the market, recorded in Q3 2013.
However, it is still significantly below the high of 132.1 set before the recession in 2007.
Acuitus chairman and auctioneer Richard Auterac said: “These IPD statistics illustrate the continued recovery of investor sentiment towards UK high street property.
“Perhaps most encouragingly there are now signs that retail recovery is spreading into the regions with evidence of sharpening yields and some rental growth in selected locations.”
The IPD recorded a 25% increase in the number of retail properties selling at auction in Q3.
The average sale price of retail properties at auction in Q3 was £477,000, down slightly on Q2’s average of £552,000.
An IPD spokesman said: “The first half of 2014 saw increasingly positive sentiment toward the commercial real estate market and the third quarter of the year has continued on this trend.”
The total value of the Retail Property Index is £63m, based on a universe of 132 properties.
