3
Feb
Knight Frank reveals increase in residential land values
Global residential and commercial property consultancy Knight Frank
has published its residential development land index for the final
quarter of 2009.
Data released by the firm revealed that residential development
land values increased for the third consecutive quarter in the
final three months of last year.
According to the organisation, greenfield land values rose by four
per cent over the period, while urban land values managed to grow
by 2.1 per cent during the same timeframe.
Although this still leaves land values well below their peak, Liam
Bailey, head of residential research at Knight Frank, welcomed the
figures, describing them as showing "a strong price
performance".
"Our outlook for 2010 is for further growth in development land
pricing, although we would expect single digit growth for the
year," Mr Bailey commented.
He added that rising demand for housing coupled with growing house
prices in the UK will put more pressure on developers to complete
new builds.
In its global house price index released in December, Knight Frank
commented that the UK market was recovering well in comparison to
some of its European neighbours and was "staging a strong
comeback".