Findings from the worlds largest commercial real estate firm CBRE reveal that capital values nationwide have fallen -0.2% in July.
As revealed in the latest CBRE UK Monthly Index, capital values decreased in July, while rental values increased 0.1% over the month.
CBRE Senior Research Analyst, Robin Honeyman said: “July’s results continue to mirror the trends reported in 2019 so far, with continued downward pressure from the Retail sector pushing All Property capital growth into negative territory.”
In the Retail sector, capital values decreased -0.9% in July, pulled down by Shopping Centres (‑1.3%) and Retail Warehouses (-1.0%). Rental values fell -0.2% over the month, driven by falls in Rest of UK High Street Shops and Shopping Centres, both -0.4%.
|All Property||Office||Central London
|Capital Value Growth||-0.2%||0.1%||0.0%||-0.9%||0.2%||0.0%|
|Rental Value Growth||0.1%||0.2%||0.4%||-0.2%||0.2%||0.1%|
Capital values in the Industrial sector increased by 0.2% in July, outperforming the other main industries. South East Industrials continue to outperform the rest of UK, reporting an increase of 0.3% in July. Capital values in the Rest of UK submarket were flat. Rental values increased by 0.2% across the Industrial sector.
Office capital values increased by 0.1% in July. Capital values for Central London Offices and Outer London/M25 were flat for the month, while Rest of UK reported marginal growth of 0.1%. Rental values rose 0.2% overall in the Office sector in July. Central London Office rental values increased more than the sector average (0.4%), attributable to 0.5% growth in the West End submarket. Rest of UK Offices reported 0.1% over the month.