UK commercial property capital values rise by 0.1 per cent

UK commercial property capital values rise by 0.1 per cent

According to the latest research, commercial property capital values increased by 0.1 per cent in August.

However, commercial property rental values remained flat during August, the CBRD monthly index reveals.

The ‘industry’ sector outperformed the other main sectors during the period studied, seeing a capital value rise of 0.7 per cent.

The overall increase in industrials in the UK was 0.6 per cent, with the South East outperforming the rest of the UK with a capital values increase of 0.8 per cent over the month.

In the industrial sector, rental values have increased by 0.2 per cent.

However, the retail sector saw capital values fall by 0.4 per cent in August, which followed a further decrease of 0.3 per cent in July.

Although, in the office sector capital values increased by 0.2 per cent over the month.

In central London specifically, capital values were flat, compared to outer London and the rest of the UK, where markets increased by 0.5 per cent and 0.3 per cent respectively.

“Investors returning from their summer holidays should not have too many surprises awaiting them,” said Robin Honeyman, research analyst at CBRE UK.

“As has been the case all year, industrials continue to outperform, while retail continues to be challenging, with retail capital values at their lowest since December 2016.”