Central London offices continue to outperform wider UK market

CBRE reports marginal increase in UK commercial property values in September

Article posted: 12 Oct 2011

According to CBRE’s latest Monthly Index, UK commercial property values grew marginally in September, with total returns for All Property increasing to 0.6% compared to 0.5% in August 2011.

Despite being only a slight improvement in capital growth, there was a definite ease away from the very slight negative capital growth seen last month, with growth of 0.1% in values. On the whole, most commercial property asset types kept their head above water in September, with office space in Central London and Midtown offices continuing to outperform, with total returns of 1.0% and 1.8% respectively. The outer London / M25 office market took a slight turn downwards in September, with a return of -0.2% signalling the end of two years of positive returns.

Nick Parker, Senior Analyst at CBRE, said: “The enduring strength of core London markets remains a feature of today’s results, as it has over the last two years, with competition from investors for a limited stock of good quality assets still driving prices up. There is a distinct divergence between property types, with good quality asset values growing, offsetting falls in lower grade property.”

For a full copy of the report go to: http://www.cbre.co.uk/portal/pls/portal/CBWEB.utils_news_public.show_image?id=8665&field=doc1&trans=n

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Posted by Jules