According to the IPD UK Monthly Property Index, the cost of commercial property in Britain fell by 0.5 per cent in September 2012, the most significant decline since November 2011.
It takes costs down to 35.3 per cent lower than they were during the height of the property boom in June 2007.
However, income return stayed steady at 0.5 per cent last month.
Dan Smith commented, “Despite the uncertainty caused by wider economic factors, it’s not all doom and gloom. We are continuing to see positive levels of activity for commercial properties although the market remains challenging, there are some excellent deals to be had. We have recently been instructed by a client to make available a selection of their properties on Cwmbran’s Springvale and Court Road Industrial Estates for sale.”
Potential purchasers have expressed an interest in buying the commercial properties to take advantage of the current low interest rates and capital values. By investing a deposit of approximately 25%, the commercial mortgage payments can be lower than rental payments. The business will also have an asset, which hopefully may appreciate in the long term.
Concluding Dan said, “Buying commercial property doesn’t suit all businesses. However, if you think your business might benefit, now is ideal to make further enquiries.”