The IPD real estate index, which is compiled by MSCI, recently revealed that commercial property values in the UK had slowly increased in October, calling a stop to a downward trend that had been progressing since the country voted to leave the EU last June.
Last month the property values for commercial holdings in the UK increased by 0.07%, after gradually decreasing declines had been recorded between July and September.
The British commercial property market, valued at 900 billion pounds, was one of the largest casualties of the uproar that occurred in the wake of Brexit. At one point there was a suspension of 18 billion pounds’ worth of commercial property funds.
Investor confidence has gradually made a comeback as multiple funds for commercial property have reopened. Developers have also resumed projects that were on hold for the longest time and property valuers have removed Brexit uncertainty clauses from their valuation reports.
Land Securities and British Land, the largest listed office landlords and listed property developers in the country are preparing to report results in the near future.
Last month’s MSCI IPD index revealed a value stabilisation for UK offices, which experienced the biggest upheaval of any British property class after the referendum on concerns that financial firms would move thousands of jobs to Europe, damaging rental demand as a result.