LONDON (Reuters) - British commercial property values rose in November for the second straight month since Britain voted in June to leave the European Union, having declined in the first three months after the vote, according to a survey published on Thursday.
Fears for property prices in the immediate aftermath of the Brexit vote had some investors rushing to pull their cash out of commercial property funds, causing a temporary lock-up on around 18 billion pounds in assets.
The British economy has shown unexpected resilience to the Brexit vote, however, while a sharp drop in sterling has attracted overseas buyers to the property market.
Commercial property values rose by 0.34 percent last month, their strongest pace of growth this year, according to the MSCI IPD real estate index.
This follows a 0.067 percent gain in October, after three months of declines totalling more than 3.5 percent.
Total commercial property returns of 0.81 percent in November were also at their highest this year.
The IPD real estate index is one of Britain’s most widely watched commercial real estate data surveys, and tracks about 10.5 percent of the professionally managed UK property across all sectors, including retail and office property.
The November index was based on data from 3,130 property investments with a total capital value of 44.6 billion pounds, MSCI said.
Reporting by Esha Vaish and Carolyn Cohn; Editing by Greg Mahlich