UK values remain flat in November: CBRE

UK commercial property values slipped by 0.2% in November following a 0.1% decline in October, according to CBRE’s latest monthly index.

So far this year, capital values across all sectors have declined 3.5%, with total returns reaching 1.7%, CBRE said.

The decline in capital values was evident in all major sectors with the exception of Central London offices, where values increased by 1.0% in November following October’s growth of 0.9%. Both October and November’s figures were led by the strength of the West End offices sub-market.

Slow to little growth of rental values was seen across the wider occupier markets with an overall increase of 0.1% in November and a year to date decline of 0.5%. The retail sector was an exception, recording its first rental growth since October 2011.

Leslie Schroeder, senior analyst at CBRE, said: ‘Although November figures were relatively flat, investors are clearly still viewing the UK as a safe haven when compared to the rest of Europe. According to CBRE’s latest research, the UK has seen the highest level of investment turnover this year across European markets.’