Regional Recovery: The Spread of Economic Growth
A long-awaited resurgence in UK commercial property finally came through last year as 2013 showed signs of a sustained economic recovery.
Real estate returns came second to those for equities in 2013, which returned 18.5% (MSCI UK), but outperformed bonds, at -5.2% for the year (JPM 7-10 year).
A recovery in regional property values during the closing months of last year helped property returns hit 10.52% in 2013, according to IPD. Commercial property fared particularly well with offices being the strongest performer at a total return of +13.61%.
Improving business and consumer sentiment in core cities such as Manchester, Birmingham, Edinburgh and Leeds, coupled with the continuing strength of London and the South East, has helped All Property capital values grow by 4.3% for the year (2.9% during the last quarter).