3 Feb

Knight Frank reveals increase in residential land values

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".ADNFCR-1222-ID-19595800-ADNFCR

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