Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

British commercial property values rise for second straight month since Brexit - MSCI

Published 15/12/2016, 15:55
© Reuters. A worker walks past a picture of the London skyline outside the sales office of a property development in central London

LONDON (Reuters) - British commercial property values rose in November for the second straight month since Britain voted in June to leave the European Union, having declined in the first three months after the vote, according to a survey published on Thursday.

Fears for property prices in the immediate aftermath of the Brexit vote had some investors rushing to pull their cash out of commercial property funds, causing a temporary lock-up on around 18 billion pounds in assets.

The British economy has shown unexpected resilience to the Brexit vote, however, while a sharp drop in sterling has attracted overseas buyers to the property market.

Commercial property values rose by 0.34 percent last month, their strongest pace of growth this year, according to the MSCI IPD real estate index.

This follows a 0.067 percent gain in October, after three months of declines totalling more than 3.5 percent.

Total commercial property returns of 0.81 percent in November were also at their highest this year.

The IPD real estate index is one of Britain's most widely watched commercial real estate data surveys, and tracks about 10.5 percent of the professionally managed UK property across all sectors, including retail and office property.

© Reuters. A worker walks past a picture of the London skyline outside the sales office of a property development in central London

The November index was based on data from 3,130 property investments with a total capital value of 44.6 billion pounds, MSCI said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.