London economy experiences positive signs.
London shows signs of high capital growth during 2011.
It has been reported that there are signs of capital growth for office space in London over the past few months. This makes it one of the very few areas that has seen an increase in capital gain in the commercial property market. The new figures have been released by the Investment Property Databank’s (IPD) UK Monthly Index.
The IPD figures show that the improvement in the London figures actually boosts the entire UK market overall. At the moment the majority of the country is experiencing a downturn in office leasing capital growth. This is chiefly down to high interest rates and a lack of completed developments around the country.
Office space in London has seen capital values rise by an impressive 17.6 per cent over the past 2 years. In fact the London market has shown consistent signs of growth during this time.
Commenting on the London capital growth and economy IPD’s managing director for the UK and Ireland, Phil Tily, commented: “While yields on government bonds remain low and with further uncertainty in the equities markets, property continues to hold its own against other asset classes.”
Furthermore, a report released in early August by CB Richard Ellis backs up these figures. In particular the statistics backed up the evidence that the London market was recovering and that it ‘maintained positive momentum’ throughout July. In both reports the London Midtown area was shown to be performing well during the past few months.