Search
 

UK Returns up 16.5% in 2006

LONDON-Commercial property returns in 2006 are expected to reach 16.5% but the prospects for next year are less positive.

By Anita Howarth | Updated on August 18, 2006

LONDON-Commercial property returns have soared 16.5% for 2006 due mainly to strong performance in the office sector, according to new quarterly data from the Investment Property Forum. But leading property advisers and investors are becoming worried about the potential for a market slowdown in 2008, the benchmark data showed.

“Prospects for 2007 are static, but there are more concerns about 2008, particularly relating to yield increase and the impact on capital growth,” says Charles Follows, the forum’s research director, in an accompanying note. Total returns comprise rental income and capital growth. The 16.5% consensus forecast for these in 2006 compare with full-year projections of 13.4% and 11.2% in the IPF’s two previous quarterly reports.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.