UK commercial property values rise

UK commercial property values rise
17/02/2017 , by , in INTERNATIONAL

British commercial property values rose at their slowest rate for three months in January, a closely-watched index showed, as Britain inches closer to formally triggering its exit from the European Union.

The value of British commercial assets grew 0.25 % in January compared with December, MSCI’s IPD real estate index showed, as a recovery from declines seen immediately after Britain’s June 23 Brexit referendum appeared to lose steam.

HSBC and UBS have said they could each move about 1,000 jobs out of London.

Uncertainty has already meant prime properties are selling for discounted prices, and property consultant JLL said landlords were having to offer better incentives to lure in tenants, especially in London.

An industry survey earlier this month showed 18 percent of respondents had reported evidence of firms looking to relocate away from Britain in response to Brexit, up from 14 percent seen in the preceding quarterly survey.

In central London, 32 percent of respondents said they had seen this evidence.

“There are clients researching other potential locations in case they need to make decisions (to move)… Inevitably there may be a proportion that go in that direction,” James Beckham, head of central London investment at property consultant Cushman & Wakefield, told.

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