DTZ: UK property investment improving

The UK property market improved significantly in the second quarter, according to a new report from DTZ. The research, entitled UK Fair Value Q2 2011, indicates that appeal of UK property to investors has almost doubled since the first quarter.

The breakdown of the best markets has shown London to remain the best investment prospect, with rentals in the office market rising by an average of 12.5 percent. Nottingham too shows promise with an eight percent pa growth in capital values expected from now until 2015, while Manchester’s industrial property market is now seen as a strong investment prospect thanks to the prospect of increased rents. The Edinburgh office and Birmingham industrial markets have also seen improvement in their investment credentials.

The news will be welcomed by property owners as with interest rates still rock bottom, investment funds look to the commercial property market as a source of guaranteed return. Increased market activity therefore looks promising for later in the year.