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RICS News: Rural commercial property values soar to record levels
Demand for commercial property is rural areas is surging and prices have reached record levels for the third period in a row.
According to the Royal Institute of Chartered Surveyors (RICS) the average price of rural commercial land and dwellings (including farms) rose by an average of £6,514 per acre in the second half of 2011.
The body said that a significant imbalance between current demand and a lack of stock was driving the increase in value and it shows no signs of slowing down this year.
"It would seem that this trend is set to continue over the next twelve months. However, the outlook is slightly more mixed for farmland which is more geared towards the residential sector, reflecting the broader national housing picture," said RICS spokesperson Sue Steer.
Respondents said that they expect demand for residential property in green belt areas to also remain strong, but said it is unlikely to rival the valuation increases seen in the commercial sector.
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