US properties recovering from downturn
American commercial property values have fallen by 17 percent in the first half of 2008. US commercial value has fallen even to a greater degree in the year 2009 far more than the UK, as was told by IPD. It was seen that in the UK property values had fallen by far in the year 2008. That scenario changes in the current year. US property values dropped to 6.9 percent which eased some of the pressure, better than 10.8 in the second quarter.
Office properties were hit the hardest with 7.8 percent decline in its property values. Warehouses, industrial properties had to taken a toll of 7.5 percent. Retail properties and shopping malls have faced very less decline with 5.1 percent decline in the property values.
Standard premium rates at renewal are slowly increasing. Programs renewed flat to10 percent in the first quarter of 2009. Average increases in the second quarter are expected to be higher and may gradually trend upwards as CAT capacity is diminished.
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