Property Check: UK Commercial Property Investment Return Falls Slightly

The commercial properties in the UK now face another challenge as the property return investment falls. According to a previous report by propertywire.com, "Total return on investment in UK commercial property fell to 1.2 percent in July from 1.3 percent in June."

The property investment falls in the previous months especially for the month of July. The fall of investment lead to a slower and fragile performance from central London. However, over the last 12 months, rental value growth in central London offices has now reached a post-recessionary high of 9.65 percent as stated in a report by propertywire.com.

Looking at the overall property values, the complete rental and capital values had a continual growth in July. The values also showed rate reduction with rental values growing at 0.3 percent, slower than the 0.5 percent for June and capital values growing at 0.7 percent down from 0.9 percent in the previous month as stated in a report by propertywire.com.

The real estate industry of UK has always been unpredictable. Sometimes it is rising, at some point, it is falling. In the past years, the UK commercial property also experienced low returns. According to a previous report by thisismoney.co.uk, "When the crunch hit, performance collapsed between June 2007 and July 2009, the British commercial property values nosedived by more than 44 per cent."

Although the slight fall is not affecting all locations. For instance, Central London buildings now have the highest rental increase in all of UK and the commercial property markets for over the last 12 months. It is driven by 12.48 percent growth in the City, and 10.52 percent growth in Midtown" as stated in a report by propertywire.com.

Although the country is facing a slight crisis in falling property investment returns, it will not always be this way. As London has recovered much of the value that was lost during the post financial crisis, some see the greatest scope for a broad, cyclical recovery lies outside of the capital as stated in a previous report by thisismoney.co.uk.