March 23, 2005—The myth that property markets in regeneration areas are less profitable than in traditional development has been shattered by the publication of a pilot Urban Regeneration Index.
The index, compiled by Investment Property Databank (IPD) and commissioned by English Partnerships and Morley Fund Management, shows that long term returns from commercial properties in urban regeneration areas have performed broadly in line with the wider U.K. market since 1995, and in the short term, most of these properties have out-performed other areas.
It found that in the short-term urban regeneration areas averaged total returns of 11.02% over the last three years, compared to 9.1% for the UK market as a whole. In the long-term, returns averaged 11.2% per year, compared to a UK average of 11.4% between 1995 and 2003.
The research is a boost to regeneration bodies seeking to attract private finance and will be used to track the performance of property in regeneration areas that are benefiting from public and private investment, notes the report.
For more information, visit the IPD Web site.
